📋 Tender Overview
Location: Ukraine
Project number: 55527
Business sector: Financial institutions
Notice type: Private
EBRD Finance Summary: EUR 140,000,000
Total Project Cost: EUR 400,000,000
Project Description
A Resilience and Livelihoods Guarantee (RLG) in the form of an unfunded risk-sharing instrument covering up to 50 per cent of the credit risk in newly originated sub-loans with the total value of EUR 400 million equivalent (the "Covered Portfolio") to be originated by PrivatBank in Ukraine.
The facility will be provided in two equal tranches, each including EUR 200 million of the Covered Portfolio; the second tranche is uncommitted.
The Project will include a sub-limit under the SME Competitiveness and Inclusion Programme in the European Union's (EU) Eastern Partnership ("EaP SMECI" sub-limit, assigned with a separate EBRD project number 55528) of up to EUR 60 million or 20% of the Covered Portfolio to finance long term capital investments of micro-, small-, and medium sized enterprises (MSME) to upgrade their technologies and equipment to EU standards, including investments in sustainable and green technologies (70% of EaP SMECI sub-limit), thereby enhancing businesses' competitiveness. 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 Objectives
The facility will be used to support lending to Ukrainian companies in the primary and secondary agriculture sectors, as well as other critical areas essential for the country's energy security, with priority given to MSME and corporate borrowers investing in projects that enhance energy security and efficiency in Ukraine.
Transition Impact
The Facility will support the Resilient and Inclusive TI qualities.
The Resilient quality stems from credit enhancement mechanism provided by the RLG, which enables PrivatBank to finance Ukrainian agricultural value chains and other critical industries to preserve food security, retain jobs, support family incomes, maintain consumption and access to food as a vital step in safeguarding people's livelihoods and to reduce losses due to supply chain disruptions, while shielding their loan portfolio from excessive risk prevailing in the current volatile conditions. The Facility will also support the Inclusive quality by providing funding to the Ukrainian businesses affected by the war, aimed at safeguarding their human and organisational capital.
