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Bank Vostok -Trade Finance Facility.

Ukraine | Financial Institutions

Identification Code:: OP/13/0036
Total Operation Cost:: 5.000.000 USD
Maturity:: 12 months
Operation Status:: BSTDB Approved Amount – Approval Date

5.000.000 USD – 08 Oct 2013
: BSTDB Signed Amount – Signed Date

5.000.000 USD – 05 Dec 2013
: Status:
Completed
Description and Purpose of the Operation:: USD 5 million will be used by the Borrower exclusively for the purpose of extending short- term pre-shipment and/or post-shipment export and/or import financing to their eligible customers in Ukraine. The Facility aims to contribute towards expanding of the trade finance activity of one of the rapidly developing Ukrainian banks.
Countries of Operation:: Ukraine (100,00%)
Financial Product:: Trade Finance
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Bank Vostok
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The Project is expected to have modest but favorable economic benefits for the Ukrainian economy, the most relevant being additional tax revenue gains from increased economic activity. In addition, the amount provided will help further enhance benefits such as increases in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is similarly expected to be modest but favorable. Other BSTDB countries are important trade partners for Ukraine so a portion of exports is likely to go there, while the import financing provided under the facility will be restricted to importation of goods from other BSTDB member countries. Such transactions will have positive, albeit modest, impact on regional cooperation, helping to enhance intra-regional trade.
Environmental Classification and Impact:: In order to reduce/avoid any Environmental, Health & Safety (EH&S) impacts that potentially may arise from trade finance activities, the Borrower shall follow the BSTDB's Negative List of Products and local EH&S legislation, as well as make sure that the beneficiaries fully comply with these requirements. The Borrower shall immediately notify the BSTDB of occurrence of any incident or accident relating to any underlying export or import transaction of which the Borrower is, or ought to be aware, and which is likely to adversely affect the state of environment, and/or human health and safety.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org