Access to Long Term Finance (WB-P156766)

Countries
  • Ukraine
Where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 2, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Ukrexim Bank
The holder of the loan, grant, or other investment.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Jan 21, 2018

Disclosed by Bank Sep 14, 2016


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Project Description
According to bank documents, two project components will provide a total of US$150 million to be intermediated by UkrEximbank through on- lending to banks and by direct lending targeting export oriented SMEs and LEs with domestic value chains. The credit line, guaranteed by the Ukrainian government, will be intermediated by UkrEximbank, which will be the Borrower and implementing agency for this project. Under Component 1 (US$100 million), UkrEximbank will on-lend funds through PFIs. UkrEximbank will select PFIs pursuant to criteria agreed with the World Bank, and subject to no objection by the World Bank. The selected PFIs will, in turn, provide sub-finance to private export oriented LEs and SMEs, the final beneficiaries of the credit line. The PFIs will assume the credit risk of the sub-borrowers that will be selected based on agreed upon eligibility criteria. UkrEximbank will have exposure only to the selected PFIs and will assume the credit risk for on-lending funds to PFIs. Sub-finance will be for longer term capital investment and working capital financing (to accommodate the nature of export finance, potential delays in the payments for goods sold and services provided in an uncertain macro-financial environment, as well as, more generally, to provide flexibility to smaller size enterprises). Under Component 2 (US$50 million), UkrEximbank will act as a PFI. UkrEximbank will lend directly to export oriented SMEs only, assuming the credit risk of sub-finance to the sub-borrowers. The eligibility criteria of sub-finance and for sub-borrowers will be different under Component 1 and 2 to reflect the differences in financing models. UkrEximbank direct lending will be more targeted (e.g. in terms of targeting only SMEs, longer maturity, etc.).
Investment Description
  • World Bank (WB)
International Bank For Reconstruction And Development: USD 150,000,000.00
Contact Information
Team Leader: Ilias Skamnelos Lead Financial Sector Economist No contact information provided at the time of disclosure. Team Leader: Vahe Vardanyan Lead Financial Sector Economist No contact information provided at the time of disclosure. Implementing Agency: UkrEximbank Sergiy Khudiyash Head of International Financial Organizations Email Address: SKhudiyash@hq.eximb.com ACCOUNTABILITY MECHANISM OF WORLD BANK The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. You can learn more about the Inspection Panel and how to file a complaint at: http://ewebapps.worldbank.org/apps/ip/Pages/Home.aspx.