📋 Tender Overview
Location:
Ukraine
Project number:
56167
Business sector:
Financial institutions
Notice type:
Private
Environmental category:
FI
Approval date:
09 Apr 2025
Status:
Exploratory
English-language PSD published:
05 Mar 2025
Project Description
An unfunded risk-sharing instrument partially covering the credit risk in newly originated subloans of ProCredit Bank in Ukraine with the total value of EUR 70 million equivalent (the "Covered Portfolio").
The Project is provided under the EBRD's Resilience and Livelihoods Framework to finance broad working capital and investment needs of Ukrainian private businesses operating in agriculture (both primary and secondary) and other key sectors supporting the livelihoods of Ukrainian businesses. Eligible small and medium enterprises ("SMEs") will additionally receive grant support in form of investment incentives upon the completion of their eligible investment projects.
Up to EUR 14 million of risk shared sub-loans will finance SMEs' long-term investments under the EU4Business-EBRD Credit Line with Incentives (within a dedicated sub-limit assigned with a separate EBRD project number 56314). This will enable 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 competitiveness of businesses. 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 Project aims to support lending to Ukrainian private companies operating in 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 enables PCBU 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. 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 the Competitive quality (via EaP SMECI sub-limit) by improving SMEs' technology in
