SLGP EC RSF Credit Agricole Ukraine

pending

 The proposed investment consists of an unfunded risk sharing facility (RSF) with Credit Agricole JSC (CAU or the Bank) for a portfolio of loans to small and medium enterprises (SME) in the amount of up to €40 million (c.US$42 million equivalent) in Ukraine, where IFC’s risk participation will be up to €20 million (c.US$21 million equivalent), or 50% of the aforementioned SME loan portfolio (the Project).  The Project will be processed under IFC’s Small Loans Guarantee Program (the Program), a programmatic approach to de-risk and scale up financing for SMEs in Ukraine and other eligible countries. The Program will benefit from a pooled first loss guarantee provided by the European Commission (EC) via European Fund for Sustainable Development (EFSD) and the IDA IFC-MIGA Private Sector Window’s Blended Finance Facility (IDA PSW-BFF) (SLGP EC/PSW), which will help enable the Bank lending to the underserved SMEs in Ukraine and at affordable rates. In addition, the investment may potentially be supported by Economic Resilience Action (ERA) Program for Ukraine funded by the Government of the Netherlands (ERA Netherlands) in the form of a performance-based incentive (PBI), subject to Credit Agricole JSC achieving agreed targets, to incentivize increased finance for SMEs in the agriculture sector in Ukraine.