49676 - RSF Midcaps Ukrsibbank Ukraine

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Summary of Investment Information

Project Number

49676

Company Name

Ukrsibbank JSC

Date SPI Disclosed

Jul 23, 2024

Country

Ukraine

Region

Europe

Projected Board Date

Nov 4, 2024

Environmental Category

FI-2 - Limited

Status

Pending Approval

Last Updated Date

Oct 8, 2024

Department

CF6E2 - Regional Industry FIG LAC & EUR/FIG EUR2 Pol, Ukr, Mold, S Cauc

Industry

Financial Markets

Sector

Commercial Banking - General

Project Description

The proposed investment consists of an unfunded risk sharing facility (RSF) with UKRSIBBANK Joint Stock Company (UKRSIBBANK or the Bank) for a portfolio of financing instruments to medium-sized and larger companies (midcaps) in the amount of up to €100 million (c.US$108 million equivalent) in Ukraine. IFC’s risk participation will be up to €33 million (c.US$36 million equivalent), or 33% of the aforementioned RSF portfolio, including the possibility of IFC mobilizing third-party unfunded participation in the RSF. It is anticipated that eligible Midcap Facilities extended to finance renewable energy and energy efficiency projects (Clean Energy Solutions) will represent approximately 20% of the RSF portfolio, thereby supporting Ukraine’s energy security.

The Project is expected to be supported by Blended Finance contributors under the Economic Resilience Action Program (ERA) for Ukraine, as described in the Blended Finance section.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	35.84
Loan
Equity

Development Impact

IFC's additionality is driven by its countercyclical role during crises, especially when the appetite of other lending institutions is subdued, through de-risking instruments for financial institutions serving midcaps and providing comfort to Midcap finance providers and international and domestic investors. Moreover, IFC's advisory services team provides global expertise on RSFs and complements each risk-sharing project with an advisory services project that aims to provide operational implementation support. In this regard, IFC will play an important role in transferring expertise and knowledge, which is expected to have a positive impact on the overall operations and activities of UKRSIBBANK.

Indicator	Metrics	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Board Composition Total (#)	number	Not Available	Not Available	Not Available
Direct Employment (#) Operations And Maintenance	individuals	Not Available	Not Available	Not Available
Female Direct Employment (#) Operations And Maintenance	individuals	Not Available	Not Available	Not Available
Number of Senior Management Positions	individuals	Not Available	Not Available	Not Available
Number of Women In Senior Management	individuals	Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The RSF portfolio will consist of eligible Midcap Facilities, including those for financing Clean Energy Solutions. The Project has been categorized as FI-2 according to IFC’s Sustainability Policy. The expected portfolio to form the RSF will comprise of low to medium environmental and social (E&S) risk investments with potentially limited adverse E&S risks or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures.
The Project will not support any activities on the IFC Exclusion List, coal-related activities, hydropower plants, offshore wind farms, solar photovoltaic (PV) installations other than to eligible Midcap borrowers for own consumption, and higher-risk business activities, that may include a) involuntary resettlement, b) risk of adverse impacts on indigenous peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, d) significant retrenchment, and/or e) significant occupational health and safety risks. For this Project, IFC’s applicable E&S requirements will be the IFC Exclusion List, the applicable environmental and social national laws and regulations, and screening out higher E&S risk transactions as contemplated in the Performance Standards. The Bank will additionally be required to be in line with the life and fire safety requirements of the Performance Standard 4, and requirements of IFC’s Performance Standard 2 on Labor and Working Conditions. The main E&S risks and impacts of this investment relate to the clients having adequate systems and capacity in place to manage the operations being financed in line with the IFC’s applicable E&S requirements.

The Bank has an ESMS consisting of Corporate Social Responsibility (CSR) Management Policy and procedures, according to which it screens all loans in portfolio against CSR Lists, and CSR Sector policies for selected high-sensitive sectors during credit approval and credit annual review checks. The system is targeted mainly at addressing environmental, compliance, reputational and social responsibility risks. There is a local CSR team responsible for implementation of the CSR policies and procedures in the Bank, including managing the E&S risks of the activities to be supported through this Project. For this Project, the Bank would need to enhance the existing policy and procedures by developing additional procedures for management of E&S risks of the RSF portfolio. This will include but not limited to developing tools to screen for eligible transactions, conduct E&S due diligence as applicable, and building internal/external capacity as needed. The Bank has assigned E&S officer who will be responsible for the implementation of these procedures for RSF. Regular training programs will be delivered to the relevant staff to implement the procedure properly as per the training plan outlined below in ESAP.

S.no	Title	Anticipated Completion Date
1	Enhance ESMS in line with IFC’s requirements to cover all loans eligible for financing under the RSF.	12/16/2024
2	Submit E&S training plan	12/16/2024
3	Carry out training for staff to implement the ESDD procedures	03/16/2025
4	Submit ESDD procedures implementation records	06/16/2025

Contacts

For Inquiries About the Project, Contact

Ukrsibbank JSC
Anastasiia Minchenko
Leading specialist

anastasiia.minchenko@ukrsibbank.com
2/12 Andriivska street, Kyiv, 04070, Kyiv
www.ukrsibbank.com

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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