RLF-RLG-Bank Lviv 2024

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A Resilience and Livelihoods Guarantee ("RLG"), under the Resilience and Livelihoods Framework, in the form of an unfunded portfolio risk-sharing facility covering up to 50% of the credit risk in sub loans with the total value of EUR 30 million equivalent (the "Covered Portfolio") to be originated by Bank Lviv ("BL", the "PFI") in Ukraine.

The Project will be delivered in two equal tranches with the second tranche being uncommitted.

20% of the RLG is part of the EU4Business-EBRD Credit Line with incentives (this sub-limit is assigned with a separate EBRD project number 55297). The EBRD and the EU support investment projects of local small and medium enterprises ("SMEs") across the Eastern Partnership region. The EBRD enables financing of long-term capital investments of SMEs to upgrade their technologies and equipment to EU standards, including investments in sustainable and green technologies (at least 70% of the sub-limit), thereby enhancing businesses' competitiveness. The EU and the US complement the offer with incentive grants and technical assistance under its EU4Business initiative.

Project ID 55296

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

Andriy Vynnychuk
vynnychuk@banklviv.com
+380 93 116 9747
https://www.banklviv.com/
1, Serbska str., Lviv, Ukraine, 79008

Project ID 55296

Status Signed

Location

Ukraine

Business Sector

Financial Institutions

Notice Type

Private

Approval Date

29 May 2024

Disclosure date

24 Apr 2024

RLF-RLG-Bank Lviv 2024 (Ukrainian) (PDF, 0.31MB)

Project description

The Project will be delivered in two equal tranches with the second tranche being uncommitted.

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

Transition impact

ETI Score:70

>Resilient quality stems from the credit enhancement mechanism provided by the RLG, which enables Bank Lviv to finance Ukrainian agricultural value chains and other critical industries and to preserve food and energy security, maintain consumption and access to critical goods as a vital step in safeguarding people's livelihoods and to reduce losses due to supply chain disruptions.

The Facility will also support the Inclusive quality by providing funding to Ukrainian businesses affected by the war, aimed at safeguarding their human and organisational capital. Providing affected businesses with financing will enable them to remain operational, may potentially limit staff shrinkages, and will allow entrepreneurs to preserve their organisational capital, i.e., the know-how needed to create systems of production combining human skills and physical capital.

The Facility also contributes to a Competitive quality by improving SME investments in line with EU standards, enhancing their competitiveness in domestic and export markets.

Client information

BANK LVIV JSC

A regional SME-focused bank in the western part of Ukraine with total assets of USD 280 million (ranked #27, 0.4% market share) and a loan portfolio of USD 183 million (ranked #18, 1% market share) as of YE2023. The bank has a head office in Lviv and operates through 19 branches (1 in Kyiv, 13 in Lviv region and 5 in other main cities in the western part of Ukraine).

EBRD Finance Summary

EUR 15,000,000

Total project cost

EUR 30,000,000

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.

Gender Additional: A childcare needs assessment will be conducted for the PFI's employees and its women-led SME clients to identify and prioritize areas for product and non-financial service development within the current wartime context in Ukraine.

Environmental & Social Summary

Categorised FI (ESP 2019): Bank Lviv is an existing client and will continue to comply with PRs 2,4 &9, and further, implement and comply with the relevant EBRD's Environmental & Social (E&S) Procedures. An Environmental Social Monitoring Plan ("ESMP") has been developed under the previous transaction and its implementation status was reviewed during the due diligence.

Technical Cooperation and Grant Financing

Non-TC: The project will benefit from donor support in the form of the first loss risk cover for potential defaulted sub-loans in the Covered Portfolio.

TC and non-TC under EU4Business-EBRD Credit Line: SME sub-borrowers will benefit from EU and US funded financial incentives for eligible sub-projects, while the bank will receive technical assistance from dedicated consultants towards investment projects preparation and implementation.

Company Contact Information

Andriy Vynnychuk
vynnychuk@banklviv.com
+380 93 116 9747
https://www.banklviv.com/
1, Serbska str., Lviv, Ukraine, 79008

PSD last updated

24 Apr 2024

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-Bank Lviv 2024

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

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)