MCFF: MEDIUM-SIZED LOAN CO-FINANCING FACILITY

Location:

Regional

Project number:

31205

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

30 Sep 2003

Status:

Completed

PSD disclosed:

31 Jul 2003

Project Description

Regional – Early Transition Countries (ETC) and Belarus.
The ETC are a group of countries with similar transition challenges for which EBRD has designed a specific program of intervention. The ETC are Armenia, Azerbaijan, Georgia, Kyrgyz Republic, Moldova, Mongolia, Tajikistan and Uzbekistan.
The proposed project is an extension of the existing Medium-Sized Loan Co-Financing Facility (MCFF). The proposed EUR 150 million increase will bring the overall Facility amount to EUR 285 million to meet the growing demand from the Partner Institutions’ Clients for medium-sized loans and guarantees. This will enable the Bank to deepen its market coverage in the ETC countries, roll-out the programme in Belarus and the Western Balkan countries and to extend the Facility to leasing companies.

Transition Impact

The MCFF improves access to finance for successful local private companies by addressing the existing financing gap in the markets. These successful private companies constitute one of the most dynamic segments of the private sector in these countries and play a crucial role in the transition process. By supporting the local private companies with high standards of corporate governance and business conduct, the MCFF stimulates competition in the respective market sectors and also demonstrates good practice to other companies in the region. Through the MCFF implementation the Bank will also transfer its skills to local banks and leasing companies in management their portfolio concentration and risk diversification and strengthen their expertise in structuring and assessment of larger and longer-term facilities.

The Client

Leading local banks (Partner Banks) or leasing companies with a track record, portfolio quality and size satisfactory to the EBRD (together referred to as Private Institutions).

Local private companies, borrowers/lessees of the Partner Institutions (“Clients” or “Sub-Borrowers”), including foreign joint ventures, which meet pre-agreed investment criteria and approved by the Bank

EBRD Finance

EUR 150 million extension

Project Cost

EUR 285 million

Environmental Impact

All Partner Institutions required to apply EBRD’s Environmental Procedures for Intermediated Lending through Local Banks. This requirement will be covenanted in the agreements with each Partner Institution and between the Partner Institutions and its potential Clients, including adherence to EBRD’s Environmental Exclusion and Referral List. The Partner Institutions will require Clients to comply with national environmental, health and safety regulations, and public consultation requirements. The Partner Institutions will provide the Bank with summary environmental reports on each sub-project proposed and an annual report on environmental, health and safety issues associated with their operations and each Client financed under the Facility.

Technical Cooperation

The ETC Multi-Donor Fund (ETCF-2005-06-19F MCFF) for the amount of EUR1,071,349 consists of two components: 1) TC funds for assistance to Partner Institutions 2) TC funds for assistance in preparation and implementation of MCFF sub-projects. Under the first component out of the total EUR 838,500 allocated to date, EUR 545,365 has been utilised for 12 Partner Banks. Under the second component EUR 232,849 has been allocated to date and EUR 79,075 has been utilised on seven assignments for six projects in Armenia, Azerbaijan and the Kyrgyz Republic.

Company Contact

c/o Andrew Ostaszewski, Senior Banker
Financial Institutions, EBRD
1 Exchange Square, London EC2A 2JN
E-mail: ostaszea@ebrd.com
Tel: +44 20 7338 6989 ; Fax: +44 20 7338 7380
c/o Irina Kravchenko, Principal Banker
SEEC Business Group, EBRD
1 Exchange Square, London EC2A 2JN
E-mail: kravchei@ebrd.com
Tel:+44 20 7338 6739; Fax:+44 20 7338 7442
 

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

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