Financed ProjectsProcredit Bank Ukraine SME III

Identification Code:

OP/06/0621

Total Operation Cost:

0

Maturity:

36 months

Operation Status:

Description and Purpose of the Operation:

BSTDB and ProCredit Bank of Ukraine continue a successful cooperation with a third SME Loan Facility to support micro, small and medium sized companies in Ukraine with the purpose to finance investment programmes for the creation, modernisation, expansion and diversification of industrial, production, agricultural or service-related facilities.

Countries of Operation:

Ukraine (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

Founded in early 2001, the Bank forms part of a global network of banks and companies presented in 22 countries , which were set up by private and public sector investors to provide financing to micro-and SME customers in developing markets. At end-2008, the Bank is 43rd in Ukraine with 0.4% market share of total assets. Competitive in lending to micro enterprises. Along with the Central Office in Kiev, PCBU currently operates through 76 outlets throughout the country.

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

In its long cooperation with ProCredit Bank of Ukraine, BSTDB extends medium term funding to numerous small and medium-sized enterprises in Ukraine, as well as demonstrates viability of providing longer term funding to Ukraine's developing small and medium enterprise sector. In the interest of facilitating economic development in member countries, BSTDB wants to support local financial intermediaries and help this important sector of the economy grow.

Environmental Classification and Impact (summary):

The Bank's prior experience with the Borrower proved the latter to be a credible entity in dealing with EH&S issues of its sub-loans. Its well- established environmental policy is supported by a functioning environmental procedure, and is fully integrated in the overall portfolio management. The Borrower is required to: - undertake environmental assessment of the sub-loans with medium and high environmental risk, as well as ensure proper monitoring of these operations; - ensure compliance of the sub-loans with applicable national EH&S requirements; - continue to adhere to the Bank’s Environmental Exclusion List and Negative List of Goods; - submit annual EH&S performance reports.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org