RLF - ProCredit Bank Ukraine LCY Loan 2024

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A senior unsecured local currency denominated loan of up to EUR 20 million equivalent to be provided to ProCredit Bank Ukraine ("PCBU") in two equal tranches of EUR 10 million each (the second tranche provided on an uncommitted basis). This medium-term local currency funding will be provided under the Resilience and Livelihoods Framework and will be used by PCBU for on-lending to private SMEs in Ukraine.

Project ID 55310

Status Disbursing

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

Viktor Ponomarenko
+38044-590-10-00
https://en.procreditbank.com.ua
107A Beresteiskyi Ave., Kyiv, 03115

Project ID 55310

Status Disbursing

Location

Ukraine

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

01 May 2024

Disclosure date

20 Mar 2024

RLF - ProCredit Bank Ukraine LCY Loan 2024 (Ukrainian) (PDF, 0.19MB)

Project description

Project objectives

The Project will help ProCredit Bank Ukraine to maintain a sustainable funding base during the crisis and provide continued access to finance for private SMEs affected by the ongoing war on Ukraine.

Transition impact

ETI Score:70

ject will support the Resilient and Inclusive TI qualities.

Resilient: reinforcing lending capacity of PCBU and helping it to maintain sound funding profile
Inclusive: supporting the war affected private businesses in Ukraine.

Client information

PROCREDIT BANK JSC

JSC ProCredit Bank Ukraine ("PCBU", the "PFI") is a 100%-owned subsidiary of ProCredit Holding AG, and a leading SME lender in Ukraine. With USD 996M in total assets as of YE23, PCBU was among top 15 out of 63 banks operating in Ukraine with ca. 1.3% market share.

EBRD Finance Summary

EUR 20,000,000.00

Total project cost

EUR 20,000,000.00

Additionality

The local currency Loan will help PCBU to diversify its funding base with medium term local currency funding and support affected SMEs in Ukraine thus strengthening the country's resilience at the time of war.

Gender Additional: A market opportunity assessment for women-led businesses will be carried out to identify and prioritize areas of product and non-financial service development within the current war context in Ukraine. The market assessment will be disseminated to key stakeholders through an event, with the aim of developing the broader ecosystem. In addition, loan officers of the PFI will take part in an online training that aims to reduce gender bias in the credit approval process.

Environmental & Social Summary

Categorised FI (ESP 2019). PCBU is an existing client of the EBRD and performance on environmental and social (E&S) issues to date has been satisfactory. Annual reporting, and previous E&S due diligence, demonstrates that the client 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 within the institution itself. The management system is applied to the entire commercial lending portfolio. PCBU will be required to continue to implement and comply with the relevant the EBRD's Environmental & Social (E&S) Risk Management Procedures, and submit annual environmental and social reports to the Bank.

Technical Cooperation and Grant Financing

TC: None

Non-TC: the Project will benefit from LCY Interest Rate Subsidy to reduce EBRD's funding cost in order to bring the interest rate of the UAH facility to acceptable market level. The expected source of donor funds for the LCY Interest Rate Subsidy is EU, EU4Business under the Action "Network of Business Support Centres in Ukraine''.

TC for Gender Additionality: market opportunity assessment for women-led businesses and dissemination to the broader ecosystem will be included within the TC (source of donor funding to be confirmed).

Company Contact Information

Viktor Ponomarenko
+38044-590-10-00
https://en.procreditbank.com.ua
107A Beresteiskyi Ave., Kyiv, 03115

PSD last updated

20 Mar 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 - ProCredit Bank Ukraine LCY Loan 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)