RLF - RLG - OTP Bank Ukraine 2023

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Resilience and Livelihoods Guarantee (RLG) sub-limit under the Resilience and Livelihoods Framework in the form of an unfunded portfolio risksharing instrument in the amount of up to €8.750 million. The guarantee covers up to 50 per cent of the credit risk in newly originated sub-loans with the total value of € 35.0 million equivalent (the "Covered Portfolio") subject to total 50 per cent of portfolio cap. The RLG Project will have 9 months inclusion period for the origination of the Covered Portfolio by the PFI, following which EBRD guarantee will have a maximum maturity of: (i) 2 years for 70% of the Covered Portfolio (expected to be represented by working capital Sub-Loans); and (ii) 5 years for 30% of the Covered Portfolio

Project ID 54481

Status Signed

Location

Ukraine

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Tetiana Petrunok
tetiana.petrunok@otpbank.com.ua
+38 044 490 05 59
https://www.otpbank.com.ua/
43 Zhylyanska str., Kyiv-33, Ukraine, 01033

Project ID 54481

Status Signed

Location

Ukraine

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

05 Sep 2023

Disclosure date

29 Aug 2023

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

RLF - RLG - OTP Bank Ukraine 2023 (Ukrainian) (PDF, 0.32MB)

Project description

Project objectives

The Facility will be used to support lending to Ukrainian private companies operating in the primary and secondary agriculture and other critical industries (inter alia food processing, retail, logistics), with the ultimate goal of preserving livelihoods in Ukraine.

Client information

OTP BANK PJSC

JSC OTP Bank in Ukraine (OTPU) is a 100 per cent owned subsidiary of OTP Bank Plc., Hungary. OTPU is a universal bank offering conventional banking products to SME/corporate and retail clients. The bank was ranked 8th in Ukraine with 3.9 per cent share of total banking assets at end-March 2023.

Additionality

Response to the war in Ukraine: the Facility is provided in the extraordinary circumstances of the ongoing war on Ukraine, serving as a significant risk mitigating instrument to enable financing of critical industries.

Environmental & Social Summary

Categorised FI (ESP 2019). OTPU is an existing client of EBRD and performance on environmental and social (E&S) issues to date has been satisfactory. Annual reporting and previous E&S due diligence demonstrated that the bank has a written Environmental Management Policy, staff nominated to manage E&S issues, adequate E&S risk management procedures built into the credit appraisal process and appropriate monitoring for E&S issues both within the portfolio and the institution. The management system is applied to the entire commercial lending portfolio. OTPU has also provided information to confirm compliance with PRs 2 and 4. OTPU should note requirements of the revised the EBRD E&S Policy notably in relation to the updated E&S Exclusion List, the E&S Referral List and the requirement to apply PRs 1 through 8 and 10 to any Category A projects considered. OTPU should continue its compliance with PRs 2, 4 and 9 and the submission of annual E&S reporting to the EBRD (to the extent possible).

Technical Cooperation and Grant Financing

Non-TC: The project is approved on the basis of minimum 50 per cent of donor funding coverage as the first loss risk cover in the amount of €4.375 million (50 per cent of the EBRD's risk share).

Company Contact Information

Tetiana Petrunok
tetiana.petrunok@otpbank.com.ua
+38 044 490 05 59
https://www.otpbank.com.ua/
43 Zhylyanska str., Kyiv-33, Ukraine, 01033

PSD last updated

29 Aug 2023

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, 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 the 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 more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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RLF - RLG - OTP Bank Ukraine 2023

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Client information

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)