Project of the European Investment Bank - АТ «Укрексімбанк»

On December 19, 2016, JSC “State Export-Import Bank of Ukraine” and European Investment Bank (EIB) signed a Finance Contract for the amount of EUR 260 million to support the private sector in the context of implementation of the principles established by the Association Agreement and the Deep and Comprehensive Free Trade Area (DCFTA) between Ukraine and the European Union (EU).

Medium and long-term credit funds under the Project will be used to finance the development of private business in Ukraine, to strengthen the positions of Ukrainian enterprises in the international trade, ensure energy efficiency and renewable energy, and environmental protection.

The following types of Final Beneficiaries may participate in the Project:

Small and medium sized enterprises (SMEs), with the staff number of up to 250 employees;
Mid-Caps companies (Mid-Caps), with the staff number ranging from 250 to 3000 employees;
Private sector enterprises (other than SMEs or Mid-Caps), with the staff number over 3000 employees.

According to the type of Final Beneficiaries, the amount of EIB sub-financing will be:

Type of Final Beneficiaries	Sub-project amount	EIB sub-financing
SMEs, Mid-Caps	Not more than the equivalent of EUR 25.0 million	Up to 100% of the cost of the subproject, but not more than the equivalent of EUR 12.5 million
Mid-Caps	Ranging from the equivalent of EUR 25.0 million to the equivalent of EUR 50.0 million	Up to 50% of the cost of the subproject, but not more than the equivalent of EUR 25.0 million
Private sector enterprises	Not less than the equivalent of EUR 40 thousand and not more than the equivalent of EUR 50.0 million	Up to 50% of the cost of the subproject, but not more than the equivalent of EUR 25.0 million

To be financed under the Project, Final Beneficiaries should comply with the following requirements:

The legislation of Ukraine and the European Union in respect of environmental issues, as published on EIB’s web site at: EIB Statement of Environmental and Social Principles and Standards
Procurements should be performed in compliance with EIB's requirements and rules as defined in the Procurement Guidelines published on EIB’s web site at: EIB Guide to Procurement

Participation of the European Investment Bank

The European Investment Bank, the financing institution of the European Union established by article 308 of the Treaty on the Functioning of the European Union. The Final Beneficiary obtains a financial advantage reflected on the interest rate. Such financial advantage amounts to a minimum of 25 basis points (0.25% per annum) compared to the annual interest rate that would be charged for the loan without EIB participation.

Excluded activities

Activities targeting the production of weapons and ammunition¹, arms, military or police equipment or infrastructures, and equipment or infrastructure which result in limiting people’s individual rights and freedom (i.e. prisons, detention centres of any form) or in violation of human rights.
Activities which give rise to environmental impacts that are not largely mitigated and/or compensated (including but not limited to projects in protected areas, critical habitats and heritage sites).
Activities considered ethically or morally controversial. Examples: sex trade and related infrastructure, services and media, animal testing², research on human cloning.
Activities prohibited by national legislation (only where such legislation exists). Examples: Genetically Modified Organisms (GMO), abortion clinics, nuclear energy, etc.
Activities targeting the production or sale of goods which are the subject of an act infringing a trade mark or a geographical indication (“counterfeit goods"³) in the EU.
Activities of the Final Beneficiary for which more than 10% of its annual revenues is generated by the following activities is not eligible for financing by the EIB:
- 1 Activities targeting the production or facilitating the use of gambling and related equipment.
- 2 Activities targeting tobacco production, manufacturing, processing, or specialist tobacco distribution, and activities facilitating the use of tobacco (e.g. “smoking halls”).

¹ Includes explosives and sporting weapons.

² Activities involving life animals for experimental and scientific purposes are eligible insofar as in compliance with the Directive 2010/63/EU of the European Parliament and of the Council of 22 September 2010 on “The protection of animals used for scientific purposes”.

³ More particularly, “counterfeit goods” means:

(a) goods which are the subject of an act infringing a trade mark in the EU Member State where they are found and bear without authorisation a sign which is identical to the trade mark validly registered in respect of the same type of goods, or which cannot be distinguished in its essential aspects from such a trade mark;
(b) goods which are the subject of an act infringing a geographical indication in the EU Member State where they are found and, bear or are described by, a name or term protected in respect of that geographical indication;
(c) any packaging, label, sticker, brochure, operating instructions, warranty document or other similar item, even if presented separately, which is the subject of an act infringing a trade mark or a geographical indication, which includes a sign, name or term which is identical to a validly registered trade mark or protected geographical indication, or which cannot be distinguished in its essential aspects from such a trade mark or geographical indication, and which can be used for the same type of goods as that for which the trade mark or geographical indication has been registered (Regulation (EU° n. 608/2013 of the European Parliament and of the Council of 12 June 2013 concerning customs enforcement of intellectual property rights, as amended or replaced from time to time - OJEU L181 of 29 June 2013, p. 15)