RLF - ESSF - RBU 2024

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

An unfunded risk-sharing instrument partially covering the credit risk in newly originated sub-loans with a total value of EUR 100 million (the "Covered Portfolio") to be provided by Raiffeisen Bank in Ukraine.

The Project is provided under the EBRD's Energy Security Support Facility ("ESSF") to finance energy generation, energy storage and energy efficiency sub-projects to Ukrainian businesses, municipalities, state owned enterprises and households. Technical assistance under ESSF will strengthen the capacity of Raiffeisen Bank Ukraine and its sub-borrowers to implement the Programme in a streamlined manner, while adhering to the EBRD eligibility criteria. Eligible small and medium enterprises ("SMEs") and residential sub-borrowers will additionally receive grant support in form of investment incentives upon the completion of their eligible investment projects.

Up to EUR 20 million of risk shared sub-loans will finance SMEs' long term investments under the EU4Business-EBRD Credit Line with Incentives (within a dedicated sub-limit assigned with a separate EBRD project number 55765). This will enable 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 competitiveness of businesses. Eligible sub-borrowers will also receive technical assistance funded by the EU and grant support in the form of investment incentives upon the completion of their investment projects.

Project ID 55764

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

Yuliia Taraschenko
yuliia.taraschenko@raiffeisen.ua
+380 44 490 8752
https://raiffeisen.ua/
4A Generala Almazova, Kyiv, Ukraine 01011

Project ID 55764

Status Signed

Location

Ukraine

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

04 Dec 2024

Disclosure date

23 Sep 2024

Project description

Project objectives

The Project aims to channel urgently needed investments into additional energy generation and storage capacity, thereby preserving energy security amidst energy crisis across all sectors in Ukraine.

Transition impact

ETI Score:70

ect will support the Resilient, Green, and Competitive TI qualities.

The Resilient quality stems from credit enhancement mechanism provided by the guarantee, which enables Raiffeisen Bank Ukraine to support the resilience of Ukrainian sub-borrowers against energy shortages, ensuring the continuity of their economic activities and safeguarding livelihoods. The Green quality stems from the intention to scale-up and speed-up GET-eligible investments in renewable energy, energy storage and energy efficiency across all types of consumers. The Inclusive quality stems from providing funding to the Ukrainian businesses affected by the war, aimed at safeguarding their human and organisational capital. The Project also contributes to the Competitive quality by improving SMEs' technology investments in line with EU standards, enhancing their competitiveness in domestic and export markets.

Client information

RAIFFEISEN BANK JSC

Raiffeisen Bank JSC is the fourth largest bank in Ukraine and the largest private bank with 6.7% market share by total assets (EUR 4.8B) as of 1H2024. The bank has 320 branches and 1,590 ATMs, servicing 2.55 million active clients offering conventional banking products to corporate, SME and retail customers.

EBRD Finance Summary

EUR 29,200,000

Total project cost

EUR 100,000,000

Additionality

Response to the war in Ukraine: the Project 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

Categorized FI (ESP 2019). Raiffeisen Bank JSC is an existing client of the Bank and its environmental and social (E&S) performance to date under existing exposures has been satisfactory. RBU has been improving its environmental social management plan and its monitoring process of sub-loans. RBU should maintain its improved environmental and social management system to assess, manage and monitor environmental and social risks and impacts associated with the sub-projects it finances. RBU is required to continue to comply with EBRD's Performance Requirements (PRs) 2, 4 and 9, and continue to implement the applicable EBRD's E&S Risk Management guidance including the EBRD's E&S Exclusion and the Referral list and submit Annual Environmental and Social Reports to the Bank. Sub-borrowers financed through RBU's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.

If EBRD funding may be used for financing solar sub-projects, these sub-projects will be managed in line with 'The Proposed Management Approach for Solar Supply Chain Risk Management' and any subsequent guidance developed under that approach.

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 Energy Security Support Facility: TC under ESSF will support Raiffeisen Bank with pipeline identification, project structuring, eligibility assessment and sub-project verification as well as assist sub-borrowers with recommendations on the best available technologies, technical parameters and project structuring. Eligible residential sub-borrowers will additionally receive investment incentives upon the completion of their eligible investment projects.

TC and non-TC under EU4Business-EBRD Credit Line with Incentives: SME sub-borrowers will benefit from EU-funded technical assistance facilitating implementation and verification of their sub-projects, and investment incentives reducing costs of eligible sub-projects.

Company Contact Information

Yuliia Taraschenko
yuliia.taraschenko@raiffeisen.ua
+380 44 490 8752
https://raiffeisen.ua/
4A Generala Almazova, Kyiv, Ukraine 01011

PSD last updated

23 Sep 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 - ESSF - RBU 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)