Raiffeisen Bank Aval is ready to provide privately owned small and middle enterprises with credits from 125 th. USD to 2,5 million USD in the framework of credit lines of the European Bank for Reconstruction and Development (EBRD) for privately owned small and middle enterprises for:
short-term financing of expenses on raw materials and spare parts for further processing or utilization;
long-term financing of production means and increasing of normative circulating capital connected with it;
leasing financing;
short-term financing of export contracts.
According to EBRD requirements, credits in the framework of this line could not be given:
for fulfillment of existing obligations of the privately owned enterprises to the banks;
for investment in securities.
Basic terms of giving credits:
Credits for renovation of fixed assets are given for 5 years (including grace period without repayment of the principal sum — up to 2 years), credits for replenishment of circulating capital — up to 1 year.
Interest rate for credit does not exceed LIBOR + 8%.
Assets put in pawn must cover not less than 120 % of the initial credit amount.
Borrower should support insurance of mortgage in full scale during the whole validity of credit.
Additional payments:
non-repeat commission for giving the credit at the rate of 2% of the approved amount of credit (can be included into amount of credit and thus it can be paid during the whole period of credit repayment);
payment for obligation at the rate of 0,5% interest per annum of approved but not chosen part of the credit.
Requirements for the projects to be credited:
1. The project must not be connected with gambling, tobacco goods production, strong (alcohol more than 15%) alcohol drinks, weapons and ammunition and also goods or activity mentioned in the Environmental list of EBRD.
2. Every project is approved after estimation carried out by bank or EBRD credit adviser including detailed business plan revision.
3. Minimum project amount — 180 thousand USD.
4. Maximum project amount — 4 million USD.
5. Lender (sponsor) must grant not less than 30% of the project amount at the expense of his private resources (for instance fixed capital stock, raw materials and other assets including considerable amount of money).
6. Goods and services must be purchased at the market price and on the principle of tender according to EBRD regulations; decision about capital investments must be made taking into consideration effectiveness of investments on a competitive basis.
Requirements for debtors:
Enterprise must be registered as legal person in Ukraine and belong to the private sector or to be under its control.
The number of permanent workers must not exceed 500 people.
Enterprise should not be connected with the bank which gives a credit.
Enterprise assets before realization of the project must not exceed 4 million USD (on the basis of net book value without taking into consideration land and buildings cost).
Correlation "Debt/Capital" (taking into account potential credit) during project realization term must not exceed 70:30.
Debt service ratio value must be not less than1,5.
The best way for description of the project purposes and means of their achievement is to use the NBU and EBDR recommendations for business plan drawing up and approved calculating tables for projection ratio of investment projects for circulating funds replenishment.
Calculation tables for projection ratio for projects of circulating funds replenishment.
short-term financing of expenses on raw materials and spare parts for further processing or utilization;
