Raiffeisenbank AVAL SME II Loan Facility

Location:

Ukraine

Project number:

36325

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

16 May 2006

Status:

Completed

PSD disclosed:

13 Apr 2006

Project Description

The proposed project is medium term financing to Joint-Stock Post Pension Bank AVAL (“AVAL”) to support its lending to private small and medium-size companies. The project consists of a USD 50 million SME credit line for on-lending to local SMEs.

The funds will be on-lent to small and medium sized enterprises, whose demand for financing is high and further growing. The loans to SME sector would meet the demand for investment finance from local businesses.

 

Transition Impact

The long-term financing received from EBRD will enable AVAL to on-lend to small companies which traditionally have little or no access to long-term finance. Sub-loans from the SME credit line have a positive impact on local economic situation and employment level as small and medium sized companies, which represent the backbone of the economy, are enabled to grow and develop further.

 

The Client

AVAL is a universal commercial bank and is the second largest bank in Ukraine with total assets of USD 3.8 billion and equity of USD 345 million at the end of 2005.

 

EBRD Finance

EBRD financing includes up to USD 50 million SME credit line for on-lending to private SME sub-borrowers under Ukraine MSE/SME Lending Framework

 

Project Cost

USD 50 million.
 

Environmental Impact

Screened FI. AVAL will be required to comply with EBRD’s Environmental Procedures for SME Loans and for Intermediated Financing through Local 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

In the past TC has been received from the following donors: EU, US, Germany and Dutch governments under the SME II Credit Line project for SME programmes. The funds were used to develop lending operations, train lending staff and for institution building in participating banks, including AVAL.

Under the present operation, AVAL will receive a technicall assistance, funded by the European Union. The TC funds will be used to facilitate the review and upgrade of the SME lending processes in Aval. This would require the bank and its staff to introduce new segmentation of the SME customers, review of the SME loan products and lending procedures and re-training of the loan officers in branches and points of sale.

 

Company Contact

Ms Victoria Masna, Financial Institutions

Phone/Fax : +380-44- 230-23-44

e-mail: vmasna@aval.com

 

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.