The European Bank for Reconstruction and Development (EBRD) has provided a four-year loan of EUR7.5 million to Bank Lviv for lending to small and medium-sized enterprises (SME) under the EU4Business program, Anton Usov, the EBRD senior adviser on external affairs, has said.
“Small and medium-sized enterprises in western Ukraine will benefit from a new loan of up to EUR7.5 million to Bank Lviv provided under the EBRD EU4Business credit line. The loan will be available for disbursement in the Ukrainian hryvnia, which will protect Bank Lviv’s borrowers from foreign currency-related risks, and offer long maturities,” the EBRD noted.
“The funds are provided in the context of the Deep and Comprehensive Free Trade Agreement (DCFTA) between the European Union (EU) and Ukraine. EU grants will be offered as investment incentives to eligible enterprises to reduce the cost of their capital expenditure on upgrades of technology and production processes to comply with EU standards and regulations,” it said on its website.
Bank Lviv is a regional bank providing banking services to SMEs and private clients across western Ukraine. It is well established in Lviv, Ivano-Frankivsk, Lutsk, Rivne, Ternopil and Uzhgorod regions, as well as Kyiv.
The EBRD is a leading institutional investor in Ukraine and to date has committed more than EUR14.54 billion in over 460 projects to the country.
The European Bank for Reconstruction and Development (EBRD) will provide Bank Lviv (Lviv) with funding in the amount of EUR5.3 million under the Women in Business program for lending to companies led by women and for the development of trade, according to a press release from the EBRD.
According to the report, the financing package will consist of a four-year loan of up to EUR4.3 million, which is provided in the hryvnia, for lending to micro, small and medium enterprises under the guidance of women. The Women in Business program provides for the provision of consulting services for women entrepreneurs. The program also includes technical assistance to financial institutions to improve service in companies led by women.
In addition, the EBRD financing package includes a limit opened to Bank Lviv in the amount of EUR1 million under the EBRD’s Trade Facilitation Program (TFP) to stimulate international and regional trade.
PJSC Bank Lviv has attracted funding from Triodos Investment Management (Netherlands) in the amount of EUR 5 million, the bank said on its website. “Dutch-based company Triodos Investment Management through its inclusive financial funds, namely Triodos Microfinance Fund and Triodos Sustainable Equity Fund, provides a credit line of EUR 5 million to Ukraine’s Bank Lviv. This line will strengthen the bank’s position in the credit financing of domestic micro and small businesses and the agrarian sector,” the report says.
Triodos Investment Management is a subsidiary of Triodos Bank.
As reported, this autumn Swiss-based asset management company responsAbility Participations AG (Zurich) acquired a 40.45% stake in Bank Lviv.
Bank Lviv was registered in 1991.
Bank Lviv ranked 39th among 82 banks operating in the country as of October 1, 2018 in terms of net assets (UAH 2.024 billion), according to the National Bank of Ukraine.
The National Bank of Ukraine (NBU) has approved the acquisition of 51% of shares in public joint-stock company Bank Lviv by Switzerland’s responsAbility Participations AG, the asset management company. The NBU said on its website that the decision was made on June 23.
Bank Lviv earlier reported that the package of documents to approve the acquisition by the new strategic investor was submitted on September 12, 2017.
Bank Lviv was registered in 1991. Its ultimate beneficiary holding over 99.9% of shares was citizen of Iceland Margeir Petursson.
The bank ranked 44th among 84 operating banks in terms of assets as of January 1, 2018 (UAH 1.938 billion), according to the NBU.
According to a posting on the website of responsAbility Participations, 60% of its shares belong to Swiss financial institutions, including Baumann&Cie, Raiffeisen Switzerland, Swiss Re Foundation, Vontobel Beteiligungen, 21% – to private investors and 19% – to managers and employees.
The core business of responsAbility Participations is investment in developing markets.