Project description
and objectives:
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The proposed project is a US$ 200 million Framework Facility for on-lending to
local banks for financing private sector micro, small and medium-size
enterprises. Under the Framework EBRD will provide direct long-term credit
lines to local participating banks (PBs) which will in turn lend the funds to
micro and small enterprises (MSEs) and to private small and medium size
enterprises (SMEs).
The Framework objective is to improve access of creditworthy MSEs/SMEs to
sources of reliable finance and to further strengthen the lending capacity and
skills of participating banks. The Framework includes technical assistance for
institutional building and increased lending capacity of the participating
banks.
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Sub-projects:
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- Ukraine SME Lending FW - SEB Bank
- Ukraine SME Lending FW - Forum Bank
- UMLP II - Kreditprombank
- UMLP II - Forum Bank
- Kreditprom SME credit line
- Raiffeisenbank AVAL SME II Loan Facility
- UMLP II - Kredobank
- Rodovid Bank MSME loan
- MegaBank - MSME Senior Loan
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Transition impact:
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The main goals of the MSE/SME Framework are to
(i) provide
access to medium-term credit to finance MSEs/SMEs
(ii) support the
development of the private sector and banking sector in Ukraine.
Transition impact will be achieved by expanding commercially viable MSE/SME
finance business in the participating financial institutions and increasing
competition thereby demonstrating to other financial institutions that small
and medium sized businesses can be a profitable and attractive customer
segment.
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The client:
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Leading private banks engaged in MSE and SME lending. The first candidate is
Agio. Agio is a small-size bank with total assets of US$ 55.7 mln, total
capital of US$ 10.8 million and net profit of US$ 1.2 million as of the end of
2003.
Other local banks engaged in MSE/SME financing and already participating under
the EBRD SME II credit line project (Nadra, Forum) will be considered for
participation in the near future.
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EBRD finance:
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A US$ 200 million MSE/SME Lending Framework Facility for selected banks to be
on-lent to the MSE/SMEs.
The first credit line under the Framework will consist of a US$ 10 million SME
credit line to Agio Bank.
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Total project cost:
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US$ 200 million.
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Environmental impact:
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Screened FI.
This operation will be carried out in accordance with EBRD’s Environmental
Procedures for Intermediated Financing trough Local Banks and for Small and
Micro Loans, including compliance with applicable national environmental,
health and safety requirements, adherence to the EBRD’s Environmental
Exclusion List and submission of an annual environmental report to the Bank.
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Technical
cooperation:
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The Framework Facility will be supported by the technical assistance aimed at
1) regional expansion of MSE finance into rural areas and the agriculture
sector as well as training in-house advisers/trainers in the banks to further
roll out and manage MSE lending operations
2) institutional
building of participating banks in areas of credit risk management, marketing,
IT, Treasury, etc.
The following TC funds will likely be provided
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€ 2.25 million from EU TACIS for MSE finance
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€ 3 million from the EU IPF 2004 for MSE finance
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€ 2.0 million from the Dutch Government for Rural and Agriculture MSE finance
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€ 3.0 million from the EU IPF 2004 programme for SME finance
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Agio
Stanislav Arzhevitin, Chairman.
10, Chervonoarmiyska st.,
01004 Kyiv,
Ukraine
Fax : 38 044 234 21 43
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EBRD contact:
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Alexander Pavlov, Operation Leader: pavlova@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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