Bayer Ukraine CA

completed

The proposed project is a risk sharing facility (“RSF”) with CREDIT AGRICOLE BANK (the “Bank”), a 99.9955%-owned Ukrainian subsidiary of Credit Agricole S.A, on portfolio of receivables generated by Bayer in connection with sales of crop-protection products to private sector farmers in Ukraine. The RSF will cover a portfolio of seasonal receivables (with maturities less than 1 year) with a total portfolio amount of up to US$35 million equivalent in local currency. IFC will share 50% of credit losses in the portfolio with the Bank up to a maximum IFC exposure of up to US$17.5 million equivalent in the local currency. IFC will enter into agreement with Bayer in order to complement the risk sharing arrangement with the Bank.The Project is designed to improve access to finance for small and medium enterprises (SMEs) that purchase or would purchase, should they have access to credit, certified and top quality crop protection products from Bayer Ltd., Ukraine (the “Company” or “Bayer Ukraine”). Bayer Ltd., Ukraine, a fully owned subsidiary of Bayer AG, offers products in three business areas: CropScience (crop protection and non-agricultural pest control), HealthCare (pharmaceutical and medical products) and Material Science (high-tech polymers and materials). The Company is a main input supplier of crop protection products, mainly insecticides, herbicides and fungicides in Ukraine and the Project will support the Company’s plans to extend its reach to a larger pool of farmers who currently lack access to credit and are using fewer and lower quality products for their agricultural production.