OTP Bank Ukraine - Mortgage Credit Line

Location:

Ukraine

Project number:

34883

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Status:

Completed

PSD disclosed:

19 Apr 2005

Project Description

The proposed project is medium and long term financing to Raiffeisenbank Ukraine (RBU) to expand its lending activities to new segments such as SME and mortgage. The project consists of a USD 10 million SME credit line for on-lending to local SMEs and a USD 10 million Mortgage credit line to provide long-term financing for individual sub-borrowers for the purposes of purchase or renovation of their residences.

The proposed financing will:

  • support growth and development of SME sector.
     
  • support growth and development of residential mortgage sector.

 

 

Transition Impact

Successful implementation of these two projects will support the development of the local SMEs which usually have limited access to long-term finance and increase RBU’s mortgage lending operations in the market where this type of lending is only developing and is restrained by lack of long-term funding.

Working with the RBU EBRD will be able to access and provide the necessary funding to a wide range of SME clients as well as provide long-term financing for residential mortgages. The latter will support the growth of mortgage lending which is relatively new in Ukraine. Ensuring development of standardised mortgage loan portfolio will help the client to securitize its mortgage loan portfolio in the future.

 

The Client

Raiffeisenbank Ukraine is the universal commercial bank operating in Ukraine since 1998 with total assets of USD 851 million and equity of USD 85 million at the end of 2004.

RBU is a 100% subsidiary of Raiffeisen International Bank Holding AG.

 

EBRD Finance

EBRD financing includes:

  • up to USD 10 million SME credit line for on-lending to private SME sub-borrowers under Ukraine MSE/SME Lending Framework
     
  • up to USD 10 million Mortgage credit line for long-term mortgages of individual sub-borrowers under Ukraine Mortgage Lending Framework

 

 

Project Cost

USD 20 million.

Environmental Impact

Screened FI.

RBU will be required to comply with EBRD’s Environmental Procedures for Banks which require adherence to the Bank’s Environmental Exclusion and Referral List, compliance with the applicable national environmental, health and safety requirements and submission of an annual environmental report to the Bank.

 

Technical Cooperation

None.

Company Contact

Mr Igor Frantskevych, Chairman of the Management Board

Phone: +380-44-490-0510
Fax: +380-44-490-0501

E-mail: iuaafri@rbu-kiev.raiffeisen.at

 

 

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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