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. CREDIT AGRICOLE BANK is a medium-size universal bank ranked ?32 in the Ukrainian banking system with ca. US$800 million of total assets and total equity of approximately US$100 million. It serves around 400,000 clients via its network of 200 branches and outlets covering all regions of Ukraine. CREDIT AGRICOLE BANK is universal bank with specific focus on the agricultural sector. The Bank has defined agriculture as priority sector for their operations in Ukraine. Its exposure to agri-sector reached US$157 million and constituted 26% of the Bank’s loan portfolio as of mid-2011. The proposed project will be IFC’s second engagement with Bayer Ltd, main supplier of plant protection products in Ukraine with revenues of approx. US$150 million. The Company’s clients are mainly represented by small and medium size farmers.