THE PREMIER TURKISH BANK
IN UKRAINE

On December 24, 2021 JSC "CREDITWEST BANK," Ministry of Finance of Ukraine and JSC "Ukreximbank" have concluded an Agreement on sub-financing within the framework of the Financial Agreement between the European Investment Bank (EIB) and Ukraine dated December 28, 2015, aimed at the implementation of the Project "Basic Loan for the agricultural sector – Ukraine" ratified by the Law of Ukraine №1530-VIII, the total volume of which is EUR 400 million, for the purpose of further lending to enterprises of the agricultural sector of Ukraine.

The project aims to expand the access of agricultural enterprises to affordable financing through bank lending, in particular, to the comprehensive support of chains for the creation of added value of the agricultural sector, which forms the final product of crop production (grain and oil-fat crops), as well as aquaculture and fisheries.

Terms of financing within the framework of the Joint Project

• Sub-loan for the financing of medium- and long-term investment needs is provided for up to 10 years.

• Sub-loan for financing medium-term and long-term working capital is provided for the period from 2 to 3 years.

Terms of financing of borrowers' projects within the framework of the Joint Project:

Types of borrowers who can receive credit funds from JSC "CREDITWEST Bank" within the framework of the joint project:

- SMEs: Small and medium-sized enterprises (up to 250 employees)

- MSCEs: Enterprises with an average level of capitalization (number of employees from 250 to 3000 people)

- EC: Eligible companies (number of employees from 3000 people)

Type of the borrower

Project amount

Amount EIB financing

Share of funds from EIB

SME, MSCE

Not more than EUR 25.0 million (in eq)

Not more than EUR 12.5 million (in eq)

Up to 50% of the project cost

EC

From EUR 25.0 to 50.0 million (in eq)

Not more than EUR 12.5 million (in eq)

Up to 50% of the project cost

The maximum amount of working capital financing by the EIB is up to the equivalent of EUR 5.0 million.

Investments that will be directed to value added chains for the cultivation of grain, oilseeds and aquaculture / fish farming, namely:

o   Production of major grain/oilseeds, including investments in agricultural machinery and equipment, as well as modernization of production infrastructure.

o   Drying/cleaning of grain and oilseeds, expansion, modernization and certification of capacity for sorting/testing and preservation.

o   Expansion, modernization and certification of capacity for processing and distribution/logistics of grain and oilseeds.

o   Restoration of aquaculture and fisheries production, including infrastructure and arrangement of ponds, development of fisheries, infrastructure for putting catches ashore and fish breeding measures.

o   Fish processing and conservation facilities and related infrastructure, including refrigeration chain logistics.

Projects that cannot be funded within the framework of the Joint Project

• production, distribution, and trade of gambling equipment;

• production, distribution, and trade of tobacco products;

• activities to attract live animals for experimental and scientific purposes;                                 

• activities that lead to negative environmental impacts;

• activities that are not considered ethical or immoral or which are prohibited by national law;

• financial activity;

• production, distribution, and trade of weapons and small arms, ammunition, military or police equipment;

• acquisition of licenses, quotas, production rights and other rights granted by state authorities;

• acquisition of land, except if it is not technically necessary for investment;

• purchase of farmland;

• acquisition of enterprises;

• real estate financing (purchase, construction, or restoration) for the purpose of selling or renting a building to third parties.

Terms of credit within the framework of the Joint Project

Thanks to the participation of the European Investment Bank, the bank's clients will receive financial benefits. JSC "CREDITWEST BANK" will provide the ultimate beneficiaries with financial benefits reflected at a favourable interest rate. Such a financial benefit will be at least 100 basis points (which is 1% per annum) compared to the annual interest rate that JSC "CREDITWEST BANK" would apply to such loans without the participation of the European Investment Bank.

An important condition for the provision of credit funds within the framework of the Project is the sub-borrowers' compliance with the following requirements:

o   Compliance with the legislation of Ukraine and the European Union on environmental protection published on the EIB website *

o   The borrower's procurement shall be carried out in compliance with the requirements and rules of the EIB specified in the Procurement Guidelines published on the EIB procurement website published on the EIB website *

Contact information

For all questions regarding obtaining credit funds from JSC "CREDITWEST BANK" within the framework of the Project "Basic Loan for the agricultural sector – Ukraine " please contact the Business Development Department of JSC "CREDITWEST BANK" and Customer Service Department: +38 044 365 00 05.

Background information

The European Investment Bank (EIB) is an international financial organization (IFI) whose shareholders are member states of the European Union (EU). The bank was founded in 1958, in accordance with Article 308 of the Treaty on the Functioning of the EU. The EIB jointly with local financial institutions are involved in financing programs and investment projects that contribute to the development of the country where they are implemented and achieving EU policy goals.

 * EIB Guide to procurement - http://www.eib.org/infocentre/publications/all/guide-to-procurement.htm

 * EIB Statement of Environmental and Social Principles and Standards - http://www.eib.org/attachments/strategies/eib_statement_esps_en.pdf