Risk Sharing Facility (RSF)

Unlock new opportunities

• Want to invest in your business but need financial support?

• Need expert expert advice and technical assistance to scale up your business?

• Looking to enhance your business with financial incentives?

What we offer

We collaborate with local Partner Banks to provide innovative risk sharing solutions that will help you invest and grow.

Our Risk Sharing Facility is designed to make financing more accessible for businesses across all EBRD Countries of Operations.

Funded risk sharing

we provide up to 65% of the financing amount for local bank loans to businesses.

Unfunded risk sharing

we guarantee up to 65% of the financing for bank loans, reducing the bank's risk and expending your access to capital.

Grants for investments

access financial incentives grants to support and enhance your business investments.

Technical assistance

benefit from subsidised, structured business advice and technical assistance provided by EBRD experts to strengthen your business strategies and operations.

Contact the Risk Sharing Facility team

Banks interested in participating in the Risk Sharing Facility can email our team in London

Email:

rsfsupport@ebrd.com

What is Risk Sharing Facility?

Through our Risk Sharing Facility we work together with local Partner Banks, sharing the risk of financing local sub-borrowers.

By engaging in this way, we can expand access to long-term financing for local companies and encourage investments in local businesses across different sectors.

To benefit from the EBRD’s risk participation, the Partner Bank enters into a Risk Participation Framework Agreement which includes general terms and conditions and overall uncommitted limit.

We offer funded and/or unfunded risk sharing:

(i) with funded, the EBRD will fund up to 65% of the Partner Bank sub-loan,

(ii) with unfunded, the EBRD will guarantee up to 65% of the Partner Bank sub-loan.

How does Risk Sharing Facility work?

You can obtain financing through this Facility from your local bank (similar process to receiving direct financing from them), which can be:

(i) in local or foreign currency,

(ii) up to EUR 25 million and,

(iii) with an average tenor of 5 - 7 years for corporate sub-loans and 10 - 15 years for project finance.

The main steps are as follows:

1. The EBRD and Partner Bank conclude a framework agreement, which sets the general terms and conditions for the EBRD’s participation in the Partner Bank loans. A revolving overall guarantee limit is set.

2. The EBRD approves and confirms the percentage of its participation (50%-65%). On a funded basis: by providing its share of the loan amount; or on an unfunded basis: by providing a guarantee to the Partner Bank of its share of the risk.

3. Partner Bank proposes individual loans for the EBRD’s participation.

4. Partner Bank and the borrower conclude a loan agreement, and the Partner Bank administers and monitors the loan.

Are you a local company (or a local subsidiary of an international company) that is majority privately owned and is registered and primarily operating in one of the EBRD's Countries of Operations?

Do you have a proven track record and sound credit history?

Do you need financing in your local currency, US dollars (USD), or euros (EUR) of up to 25 million for up to 15 years, for capital expenditure and working capital needs?

Do you want to receive all the benefits of working with the EBRD and a local bank?

Do you meet our integrity criteria?

If the answer to the above is Yes, you could be eligible for the Risk Sharing Facility.

The Risk Sharing Facility is available in all EBRD Countries of Operations, with limited additional due diligence by the EBRD and no industry limitation.

Use of proceeds and eligible instruments

We offer loans for:	Eligible instruments include:
Capital expenditure; Working capital needs; Acquisitions, expansion; Financing loans to NBFIs; Refinancing/consolidation of existing exposures.	Senior loans; Leases; Letters of credit; Guarantees; and Subordinated loans.

What are the benefits of working with us?

For Partner Banks:

The EBRD can participate in 50% - 65% of the risk of the exposure and can fund up to 100% of the loan in EUR, USD or the local currency.
The Partner Bank benefits from regulatory capital relief for the EBRD’s portion of the exposure.
The Partner Bank would typically improve its return on the covered exposures: ROA, ROE, RAROC.
The Partner Bank can ensure compliance with regulatory limits – single obligor, group, industry and related party.
In case of defaults and losses, the Partner Bank has lower exposure.
The Partner Banks can attract or retain good clients and refer them to the EBRD for technical assistance and advisory support.
The Partner Bank retains the full income from other business lines (e.g. cash management and working capital facilities).

For Sub-borrowers:

Sub-borrowers can conveniently work with their local banks, while the EBRD will be a partner in financing their business.
Sub-borrowers can fully benefit from the EBRD’s pre and post investment business advice, including:
- Preparing for the project and supporting them during project implementation.
- Improving efficiency through technical assistance in various areas to improve business areas like working capital management, setting up databases, production cycle enhancement and beyond.
- Improving the business competitiveness in a range of areas from strategy to operations, quality management, financial reporting, energy efficiency and much more.
- Loan agreements governed by local law and in many cases in local language.

RSF agreements and financing might be accompanied by grant resources by providing access to subsidised, structured business advice and technical assistance from the EBRD, along with financial incentive grants on investments.

Skills in Business

Supports better recruitment, training and retention of skills, overcomes skills mismatches, and develops capacity for upskilling.

FINTECC

Finance and Technology Transfer Centre for Climate Change supports the adoption of advanced climate technologies.

VCCP

Value Chain Competitiveness Programme supports the shift to high value-added production to facilitate integration into export-oriented value chains.

HIPCA

High Impact Partnership on Climate Action supports global climate change mitigation and adaptation efforts.

ESG Incentives

Environmental, Social and Governance Incentives support the adoption or improvement of ESG standards and practices.

Technical Assistance to Partner Banks

The EBRD provides technical assistance to Partner Banks for institutional capacity building (if required by the Partner Banks).

Local & International Advisory

Strategic review of any aspect of an enterprise (work with an international or local industry expert

FMEP & AIP

Financial Management Enhancement Programme and Accounting Improvement Programme help SMEs develop industry best practices and increase the quality of their financial management and reporting.

High Climate Impact for the Corporate Sector Programme

Technical assistance and advisory services for low-carbon and climate-resilient corporate strategy development to implement climate governance processes and outcomes.

Green & Outcome-Linked Loans

Support adoption or improvement of ESG standards and practices.

Our local sub-borrowers speak for us…

The EBRD’s Risk Sharing Facility allowed Enzym Group to quickly raise critical working capital financing in the context of a challenging macroeconomic environment. Having an existing, long-lasting relationship with the EBRD through the successful direct financing experience, the RSF provided a fast-track, efficient approval and signing process, aligned with the requested financing needs and structure.

Andriy Tsehelyk, CEO, Enzym Group

By sharing the risk on loans provided by a Partner Financial Institution, the RSF enables us to access financing with greater confidence. Access to technical experts, the facilitation and implementation of best practices, and the rigorous monitoring of the execution process, ensures that our project is executed sustainably and fully aligned with the highest European standards. This combination of financial support and technical expertise will significantly strengthen our ability to grow, invest in new opportunities, and achieve long-term success. We appreciate the EBRD’s continued support and commitment to fostering local business growth!

Mariana Moiseev CFO, Moldretail Group

The RSF is a great instrument for other market participants and we recommend it for all countries under the umbrella of EBRD. It’s easy to apply, comparatively prompt to get an approval: allowing the local banks to finance the deals where they are limited in decisions. I would say that without the RSF, our financing project would be un-bankable.

Veaceslav Peresnicenco CFO, Wetrade Group

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