Additional Financing for COVID-19 Response under the Access to Long Term Finance Project (AF for ALTF) was approved by the Board of Executive Directors of the World Bank in May 2021 in the amount of USD 100 million for the period up to 20 years.
On 7 June, 2021 both the Guarantee Agreement between Ukraine and International Bank for Reconstruction and Development (IBRD) and the Loan Agreement Loan (No.9254-UA) between IBRD and Ukreximbank were signed.
Ukrainian Parliament ratified the Guarantee Agreement by adopting the Law of Ukraine on 24 March, 2022, No.2143-IX. The Loan gained effectiveness on 26 April, 2022.
Additional Financing for COVID-19 Response under the Access to Long Term Finance Project is aimed to improve access to long- and medium-term finance for export oriented small and medium enterprises (SME) affected by the COVID-19 for financing investment projects and working capital requirements of these entities.
The proposed Additional Financing for COVID-19 Response under the Access to Long Term Finance Project consists of two components: wholesale lending through participating banks and direct lending by Ukreximbank.
The World Bank long-term loan funds under the AF for ALTF Project provide to the Ukrainian export oriented small and medium enterprises, which are in compliance with the Project eligibility criteria, including the requirements for procurements, environmental and social procedures described in Environmental and Social Management Framework (ESMF), which is disclosed on the Ukreximbank official site.
On 26 June, 2017, the Guarantee Agreement between Ukraine and the IBRD, as well as the Loan Agreement (Project for Access to Long-Term Financing) between Ukreximbank and the IBRD, were signed. The Guarantee Agreement was ratified by the Parliament of Ukraine on 5 April, 2018. The Loan Agreement has entered into force on 12 June, 2018. The loan amount is USD 150 million with a term of 35 years.
Access to Long Term Finance Project (ALTF) is aimed to improve access to long and medium term finance for export oriented small and medium enterprises (SME) for financing investment projects and working capital requirements of these entities.
The proposed Access to Long Term Finance Project includes two components: wholesale lending through participating banks and direct lending by Ukreximbank.
All sub-projects financed under the ALTF Project shall comply program terms and eligibility criteria referred to in the Operation Manual, which includes Environmental and Social Management Framework (ESMF).
This ESMF defines the contents, procedures and institutional responsibilities for Environmental Assessment (EA) of sub-projects. These procedures are consistent with both the environmental policies and regulations of the Government of Ukraine and the Bank (OP/BP 4.01 Environmental Assessment, Social Assessment Procedure).
ESMF is intended to provide those responsible for assessing the viability of sub-projects simple step by step guidelines/procedures to ensure that the sub-projects are in compliance with both Ukrainian environmental regulations and the World Bank EA policies and procedures.
Ukreximbank and Participating Banks should follow the above procedures as part of the overall appraisal of sub-projects.
Energy Efficiency Project (EEP) was approved by the IBRD Board of Executive Directors in May 2011 in the amount of USD200.0 million. In June 2011, both the Guarantee Agreement between Ukraine and the IBRD and the Loan Agreement between the Bank and IBRD were signed. Ukrainian Parliament ratified the Guarantee Agreement by adopting the Law of Ukraine on 4 October 2011 #3812-VI. The Loan gained effectiveness in November 2011.
The purpose of the Energy Efficiency Project is reduction of the energy intensity in the Ukrainian industry and decrease of energy losses in the residential sector, particularly, in heating and household maintenance. Ukreximbank will apply the 30-year maturity funding to provide medium- and long-term financing of energy efficiency investment projects to Ukrainian industrial and municipal enterprises. Ukreximbank will provide loans under the Project both directly to the final beneficiaries as well as via Ukrainian commercial banks selected pursuant to the eligibility criteria established jointly with the World Bank. Disbursement of the facility funds is under way.
On 11 May, 2011, the Cabinet of Ministers of Ukraine resolved on expediency of additional export development financing against the sovereign guarantee. On 25 August, 2011, the Board of Executive Directors of the World Bank approved the loan in the amount of USD 150 million for the period up to 30 years under the Additional Financing for the Second Export Development Project for Ukreximbank. On 4 October, 2011 both the Guarantee Agreement between Ukraine and IBRD and the Loan Agreement between IBRD and Ukreximbank were signed.
Ukrainian parliament ratified the Guarantee Agreement by adoption of the Law of Ukraine of 21 December 2011 #4208-VI. The loan became available for use by the Bank on 31 January 2012.
The Additional Financing increased the existing facility amount under the EDP2 and boosted activity in the framework of the underlying project. The Additional Loan contributes to continuing positive dynamics of the previous export development project implementation, enhancement of impact of the existing facility on the national exporters’ activity.
Ukreximbank acted as a borrower of funds and is responsible for Project implementation and bears all credit risks. The World Bank long-term loan funds were provided to the Ukrainian exporters (Beneficiary Enterprises), which are in compliance with the Project eligibility criteria.
The Additional Financing funds increased Ukreximbank potential to render a wide range of services for facilitating export by the most cost-effective means for the customers, which is a critical prerequisite for support of the export development activity of the Ukrainian companies. The Project is expected to result in growth of the Ukrainian corporate sector export volume in the near-term outlook and enhancement of its capacity to support and ensure the export growth in the medium- and long-term outlook.
Ukreximbank was the only Ukrainian bank participating in the Export Development Project of the International Bank for Reconstruction and Development (IBRD). The EDP was a special investment programme offering credit, technical and information assistance to Ukrainian exporters.
Loan Agreement was signed in 1997. Total amount of credit line for financing export development projects in Ukraine was USD 60 million and EUR 7.7 million. 32 exporting enterprises with leading standings in different sectors of Ukrainian economy participated in the Project. The line was completely utilized and on June 30, 2004 the Project was accomplished.
Second Export Development Project (EDP2) was approved by the IBRD Board of Executive Directors in July 2006 in the amount of USD 154.5 million. In September 2006, both the Guarantee Agreement between Ukraine and the IBRD and the Loan Agreement between the Bank and IBRD were signed. Ukrainian parliament ratified the Guarantee Agreement by adoption of the Law of Ukraine of 1 December 2006 #423-V. The loan became available for use by the Bank on 20 March 2007.
The primary objective of EDP2 was to provide medium and long-term working capital and investment finance to private exporting enterprises using financial intermediation to involve pre-selected Ukrainian commercial banks to further fund investment needs and working capital of Ukrainian privately-owned exporting companies.
EDP2 programme was amended in June 2009 to provide additional flexibility and to increase its effectiveness in the light of the financial crisis as the Bank was allowed to extend sub-loans out of EDP2 funds directly to existing clients who were eligible exporting companies.
There are a number of sub-projects approved within the EDP2 programme. The loan proceeds supported investment and working capital requirements of over 35 eligible Ukrainian exporters enabling the participating exporting companies to better withstand the impact of the global financial and economic crisis and achieving in a number of cases a significant increase in export revenues.
Given the success of Second Export Development Project (EDP2) programme and based on the Bank’s forecasts of export demand and consultation with the IBRD and the Government, the programme financing was increased by additional USD 150 million.
Environmental and Social Management Framework