📋 Tender Overview
Location: Ukraine
Project number: 55296
Business sector: Financial institutions
Notice type: Private
EBRD Finance Summary: EUR 15,000,000
Total Project Cost: EUR 30,000,000
Project Description
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 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
The 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.
