Microfinance Bank of Ukraine

completed

Summary Of Project Information (SPI)Project NameUkraine - Microfinance Bank of UkraineRegionEurope IISectorProject No009758Projected Board DateNovember 22, 1999Company NameMicrofinance Bank of UkraineTechnical Partner and/or Major Shareholders Shareholders: IFC, EBRD, Kreditanstalt fur Wiederaufbau, Western NIS Enterprise Fund, and the technical partner International Projekt Consult.Project Cost Including proposed IFC investment Total project cost: US$28.8 million. Proposed IFC equity investment of up to US$2.4 million and a loan of up to US$5 million.Location of project and Description of site Kiev, Ukraine.Description of Company and Purpose of Project The project involves introducing micro-lending techniques to Ukraine, through the creation of a specialized financial institution, the Microfinance Bank of Ukraine (MBU). MBU will lend to micro and small enterprises, a sector which is not currently being adequately served by Ukraine''s nascent banking sector. MBU is expected to provide loans with relatively short maturities - for working capital and for equipment acquisition - including micro loans averaging US$5,000, small loans averaging US$50,000 and "gold" loans averaging US$200.Environmental Category and Issues This is a Financial Intermediary (FI) Type 1 project according to IFC''s environmental review procedure. MBU will be required to ensure that its operations are consistent with host country requirements and IFC’s Microfinance Exclusion List. In addition, MBU will be required to submit an annual environmental performance report.Date SPI sent to InfoShop October 20, 1999“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384