52808 - SME+ RSF OTP Bank Ukraine

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Summary of Investment Information

Project Number

52808

Company Name

OTP Bank JSC

Date SPI Disclosed

Jul 1, 2026

Country

Ukraine

Region

Europe

Projected Board Date

Jul 20, 2026

Environmental Category

FI-2 - Limited

Status

Pending Approval

Last Updated Date

Jul 1, 2026

Department

Regional Industry FIG LAC & EUR

Industry

Financial Markets

Sector

Commercial Banking - General

Additional Project Attributes

Blended Finance

Project Description

The proposed investment consists of an unfunded risk sharing facility (RSF) with OTP Bank JSC (OBU or the Bank) for a portfolio of up to €100 million consisting of eligible loans and other eligible credit instruments to small, medium-sized enterprises (SMEs) and larger companies (SME+) in Ukraine, where IFC’s risk participation will be up to 50 percent (€50 million) of the aforementioned portfolio (the Project). The objective of the Project is providing the Bank with a de-risking instrument and helping it expand lending to SMEs and SME+, including underserved groups in agribusiness, women-owned, led by or employing youth, veterans and/or other similar groups (Target Groups). It is expected that at least 60 percent of the RSF portfolio will be earmarked to financing renewable energy, energy efficiency, climate smart agriculture (Sustainable Solutions) and Target Groups, including at least 50 percent allocated to Sustainable Solutions.

Associated Advisory Engagement

IFC will support OBU in enhancing its sustainable finance practices, particularly in climate mitigation and adaptation financing, by complementing the Sustainable Solutions component with operational implementation support to help the Bank expand its sustainable finance portfolio. A separate advisory engagement on Target Groups is expected to support OBU’s efforts to scale its outreach towards these vulnerable segments.

Sponsor / Cost / Location

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Guarantee	Others (only if UoP is not available)

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The most significant expected project-level outcome is increased access to finance for SMEs and SME+ to support investments in Sustainable Solutions and Target Groups. The Project will promote resilience of the enterprise finance market in Ukraine as part of IFC’s systemic intervention under the Economic Resilience Action (ERA) Program for Ukraine and the programmatic approach to scale up private sector financing in Ukraine.

IFC’s additionality is driven by providing a risk mitigation solution to enhance OBU’s capacity to expand its lending operations, including for Sustainable Solutions and Target Groups. IFC’s advisory services will enhance the Bank’s capacity in financing more productive Sustainable Solutions and lending to underserved segments, fostering economic growth and increasing outreach to Target Groups.

Indicator	Metrics	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Number of Outstanding Loans, SMEs	number	Not Available	Not Available	Not Available
Value of Outstanding Loans, Climate	$	Not Available	Not Available	Not Available
Value of Outstanding Loans, SMEs	$	Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The Project is categorized as FI-2 in accordance with IFC’s Sustainability Policy. The Bank will be required to screen out any activities that do not meet eligibility criteria, including but not limited to IFC Exclusion List activities, activities related to production and trade of radioactive materials, any coal-related activities, hydropower plants, offshore windfarms and solar photovoltaic (PV) installations, except for the acquisition by borrowers of small-scale solar photovoltaic installations, and/or borrowers involved in higher-risk business activities that may include: (i) involuntary resettlement, (ii) risk of adverse impacts on indigenous peoples, (iii) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, (iv) significant retrenchment risks, or (iv) significant occupational health and safety risks (e.g., risk of serious injury or fatality to workers).
The Project’s main risks & impacts are associated with the capacity to screen out projects which do not meet eligibility criteria, including higher risk transactions, and to implement procedures to assess and monitor the environmental and social (E&S) risks of the target assets. The main E&S risks of the supported portfolio are expected to be of a medium nature and potentially related to labor and working conditions, pollution prevention risks and community impacts. IFC’s applicable E&S requirements for the Project will be the IFC Exclusion List, the applicable E&S national laws and regulations, and screening out higher-risk transactions as contemplated in the Performance Standards (PS). The Bank will additionally be required to maintain alignment with the requirements of IFC’s Performance Standard 2 on Labor and Working Conditions and life and fire safety requirements.

OBU’s E&S management system (ESMS) is integrated into governance and risk systems, with Environmental, Social, and Governance (ESG) oversight embedded at the Management Board level and operationalized through a dedicated Risk Control Unit staffed with ESG specialists. The Environmental & Social Policy, the ESG risk procedures, and the ESG Strategy form the foundation for lending risk assessment, monitoring, and stakeholder engagement. The Bank’s ESMS integrates appropriate tools aligned with IFC Performance Standards (including PS 2 and PS 6) and the relevant risks are managed through exclusion lists, lending and leasing screening, sectoral risk classification, and enhanced due diligence for higher-risk clients. Enhanced requirements under an additional procedure established for the previous project with IFC ensure that all eligible facilities undergo exclusion list screening, sectoral risk categorization, and mandatory ESG due diligence regardless of loan size, with results incorporated into credit committee reviews. Monitoring is rigorous, with annual client reviews, monthly portfolio risk reporting to management, quarterly updates to the Bank’s Supervisory Board, and active early warning systems. ESDD reports provided align with IFC requirements. The external communication mechanism is well-structured with multiple channels.

For this Project the Bank is required to enhance its ESMS and ESDD to cover eligible SME+ facilities in addition to SMEs, and to screen out higher risk business activities and all other ineligible facilities. Additionally, the Bank will need to develop and implement an anti-sexual harassment policy, including provisions for an appropriate grievance mechanism for sexual exploitation, abuse, assault, and harassment (SEAH) cases and capacity-building for staff handling such cases to support appropriate case management. The Bank will also introduce training on the prevention of sexual exploitation, abuse and harassment during employee induction and provide regular refresher training thereafter.

S.no	Title	Anticipated Completion Date
1	Submit Enhanced ESMS	08/31/2026
2	Submit Enhanced HR policy and procedures	11/30/2026
3	Submit training plan	08/31/2026
4	Submit training records	11/30/2026

Contacts

For Inquiries About the Project, Contact

JOINT-STOCK COMPANY OTP BANK (OTP BANK JSC)
FI@otpbank.com.ua
Financial Institutions Unit
+38 044 490 0559
FI@otpbank.com.ua
JOINT-STOCK COMPANY OTP BANK 43, Zhylyanska Street Kyiv, 01033, Ukraine
Otpbank.com.ua

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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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