John Deere Equipment Risk Sharing

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Translated version of this PSD: Ukrainian The EBRD is considering providing unfunded risk participation in the portfolio of loans and leases extended by Raiffeisen Bank Aval and Raiffeisen Leasing Ukraine to farmers and agricultural companies in Ukraine for the purchase of John Deere agricultural equipment. This project will address a key transition impact in Ukraine, namely the lack of financing for farmers to buy new and/or replace old equipment in order to improve efficiency and yields. The main transition impact will therefore derive from demonstrating a new way of financing agricultural equipment leasing in Ukraine, with the hope that more financial institutions would take this up. The project would present an example of a successful collaboration between equipment manufacturers and a financial institution, encouraging other equipment producers and banks in the country to introduce similar schemes. Another impact would derive from the backward linkages to the farming sector, since new equipment should hopefully lead to improved efficiency and yields at the farm level. Raiffeisen Bank Aval, a subsidiary of Raiffeisen Bank International (Austria) in Ukraine and Raiffeisen Leasing Ukraine, Raiffeisen Bank Aval’s leasing subsidiary are one of the leading providers of financing and leasing solutions to customers in Ukraine. Deere & Company (“John Deere”) is one of the largest agricultural equipment producers in the world, with global sales of US$ 32 billion and EBITDA of US$ 5.9 billion in fiscal year 2011, present in 30 countries with approximately 56,000 employees worldwide. JD shares are traded on the New York Stock Exchange. Unfunded risk participation of up to US$ 20 million or the UAH-equivalent for US$ or UAH loans and leases to be extended by Raiffeisen Bank Aval or its subsidiary Raiffeisen Leasing Ukraine US$ 50 million or UAH-equivalent. Categorised FI: Raiffeisen Bank Aval will be required to comply with PR2 and PR9, implement the E&S Leasing Procedures agreed with John Deere Group under OP ID: 42302 and submit Annual Environmental and Social reports to the Bank. None. Victoria Masna, Director Financial Institutions, Raiffeisen Aval Bank, email: Victoria.masna@aval.ua, tel./fax: + 38 044 230 2344 Joern Loesch, Director Business Development, John Deere Financial, email: LoeschJoern@JohnDeere.com, tel.: +41 52 632 95 83