📋 Tender Overview
PROJECT ID15296
GUARANTEE HOLDER
ING Bank, N.V.
INVESTOR COUNTRY
Netherlands
ENVIRONMENTAL CATEGORYFI
DATE SPG DISCLOSEDApril 09, 2025
BOARD APPROVAL DATEJune 11, 2025
PROJECT TYPENon-SIP
FISCAL YEAR2025
Project description
On June 30, 2025, MIGA issued a guarantee of up to EUR85.0 million for the equity investments (including retained earnings) by ING Bank N.V. (ING) in its subsidiary in Ukraine, Joint stock company ING Bank Ukraine (ING Ukraine). The MIGA guarantee is expected to provide regulatory capital relief to ING on a consolidated level by reducing the amount of Risk Weighted Assets (RWAs). The tenor of the guarantee is expected to be up to 1 year and 1 day (the Project).
ING is a global financial institution with a strong European base, offering retail and wholesale banking services. Its subsidiary banks outside of the Netherlands are required to maintain reserves at the central banks in their respective jurisdictions. Mandatory reserves in ING Ukraine contribute to ING’s overall RWA at the consolidated level, resulting in less headroom for other assets at a given level of capital.
Environmental Categorization
ING Ukraine provides wholesale banking products and services to large corporates in Ukraine. The MIGA guarantee will support short-term transactions such as working capital loans, trade finance loans and pre-export finance. These transactions are considered to have potentially limited adverse environmental and social (E&S) risks or impacts that are generally site-specific, reversible and can be addressed through mitigation measures. This project has thus been categorized as FI-2 in accordance with MIGA’s Policy on Environmental and Social Sustainability (2013).
The main E&S risks of this project relate to ING Ukraine’s ability to identify, assess, and manage the E&S risks and impacts associated with its lending activities and the management of labor matters. MIGA analyzed the bank’s portfolio for types of transactions, tenor, size, industry sectors, and exposure to MIGA’s Exclusion List. MIGA also analyzed the bank’s E&S risk management procedures in line with the requirements of Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts (PS1), and the bank’s labor practices in line with the requirements of Performance Standard 2: Labor and Working Conditions (PS2). The applicable E&S requirements for lending portfolio for this project will be: (i) MIGA Exclusion List; and (ii) applicable E&S laws in Ukraine.
As of December 2024, ING Ukraine’s portfolio included predominantly short-term (less than 12 months) transactions via following products for corporate clients – working capital/revolving credit lines, trade finance and pre-export finance. The main sectors financed include commodities, food and agriculture; construction and natural resources. ING Ukraine has no exposure to activities on the MIGA Exclusion list, coal or upstream oil and gas activities.
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