Translated version of this PSD: Ukrainian
Project Description
The EBRD is considering providing unfunded risk participation in the portfolio of loans and leases extended by Raiffeisen Bank Aval and Raiffeisen Leasing Ukraine to farmers and agricultural companies in Ukraine for the purchase of John Deere agricultural equipment.
Transition Impact
This project will address a key transition impact in Ukraine, namely the lack of financing for farmers to buy new and/or replace old equipment in order to improve efficiency and yields. The main transition impact will therefore derive from demonstrating a new way of financing agricultural equipment leasing in Ukraine, with the hope that more financial institutions would take this up. The project would present an example of a successful collaboration between equipment manufacturers and a financial institution, encouraging other equipment producers and banks in the country to introduce similar schemes. Another impact would derive from the backward linkages to the farming sector, since new equipment should hopefully lead to improved efficiency and yields at the farm level.
The Client
Raiffeisen Bank Aval, a subsidiary of Raiffeisen Bank International (Austria) in Ukraine and Raiffeisen Leasing Ukraine, Raiffeisen Bank Aval’s leasing subsidiary are one of the leading providers of financing and leasing solutions to customers in Ukraine.
Deere & Company (“John Deere”) is one of the largest agricultural equipment producers in the world, with global sales of US$ 32 billion and EBITDA of US$ 5.9 billion in fiscal year 2011, present in 30 countries with approximately 56,000 employees worldwide. JD shares are traded on the New York Stock Exchange.
EBRD Finance
Unfunded risk participation of up to US$ 20 million or the UAH-equivalent for US$ or UAH loans and leases to be extended by Raiffeisen Bank Aval or its subsidiary Raiffeisen Leasing Ukraine
Project Cost
US$ 50 million or UAH-equivalent.
Environmental Impact
Categorised FI: Raiffeisen Bank Aval will be required to comply with PR2 and PR9, implement the E&S Leasing Procedures agreed with John Deere Group under OP ID: 42302 and submit Annual Environmental and Social reports to the Bank.
Technical Cooperation
None.
Company Contact
Victoria Masna, Director Financial Institutions, Raiffeisen Aval Bank, email: Victoria.masna@aval.ua, tel./fax: + 38 044 230 2344
Joern Loesch, Director Business Development, John Deere Financial, email: LoeschJoern@JohnDeere.com, tel.: +41 52 632 95 83
Business opportunities
For business opportunities or procurement, contact the client company.
For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com
General enquiries
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
Public Information Policy (PIP)
The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP
