📋 Tender Overview
Location: Ukraine
Project number: 55245
Business sector: Financial institutions
Notice type: Private
Environmental category: FI
EBRD Finance Summary: EUR 50,000,000
Total Project Cost: EUR 100,000,000
Project Description
A Resilience and Livelihoods Guarantee ("RLG"), under the Resilience and Livelihoods Framework ("RLF"), in the form of an unfunded portfolio risk-sharing facility covering up to 50 per cent of the credit risk in sub-loans with the total value of up to EUR 100 million equivalent (the "Covered Portfolio") to be originated by Raiffeisen Bank JSC in Ukraine.
The Project will be delivered in two tranches: (i) committed Tranche A amounting to EUR 60 million of the Covered Portfolio and; (ii) uncommitted Tranche B amounting to EUR 40 million of the Covered Portfolio.
20% of the RLG is part of the EU4Business-EBRD Credit Line with incentives (this sub-limit assigned with a separate EBRD project number 55246). 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 Facility will support the Resilient, Inclusive and Competitive TI qualities.
The Resilient quality stems from credit enhancement mechanism provided by the RLG, which will enable Raiffeisen Bank JSC 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 the Ukrainian businesses affected by the war, aimed at safeguarding their human and organisational capital.
The Facility also contributes to the Competitive quality by improving SME investments in line with EU standards, enhancing their competitiveness in domestic and export markets.
