The World Bank Implementation Status & Results Report Access to Long Term Finance (P156766) Access to Long Term Finance (P156766) EUROPE AND CENTRAL ASIA | Ukraine | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 7 | ARCHIVED on 24-Sep-2021 | ISR47661 | Implementing Agencies: Ukreximbank, Ukreximbank Key Dates Key Project Dates Bank Approval Date: 02-May-2017 Effectiveness Date: 12-Jun-2018 Planned Mid Term Review Date: 27-Nov-2020 Actual Mid-Term Review Date: 18-Dec-2020 Original Closing Date: 31-Mar-2022 Revised Closing Date: 30-Jun-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve access to longer term finance for export oriented small and medium enterprises. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Credit facility to provide financing to export oriented SMEs.:(Cost $250.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Implementation Status: The ALTF project maintains a satisfactory implementation three years into its implementation since the declaration of effectiveness on 12 June 2018. In 1h21 the UEB and its PIU made a robust effort to accelerate disbursements and as of July 22nd, 2021, cumulatively 57 subprojects (implying an additional 14 projects since the last mission) have been approved for direct lending by the UEB, totaling US$ 89.5 million (of which UEB disbursed US$ 74.5 million) and one additional subproject for US$ 5 million have been approved for disbursement by the new participating financial institution Bank Pivdenniy, in addition to one subproject for US$ 2 million that was disbursed in the early stage of the Project by the first PB, Megabank. The initial subsidiary financing agreement with Megabank was fully utilized, and UEB does not see it feasible to increase exposure to the PB under its current risk management policies. The US$ 5 million subsidiary loan agreement with Bank Pivdenniy has also been fully utilized, and the bank will be deciding on increasing exposure to the Project at the end of the calendar year 2021. According to the information presented by UEB and PBs, as of July 22th, 2021, 58 sub-loans continued to be serviced on time, whereas one minor sub-borrower remained in a delinquent payment state due to forcemajeure circumstances (warehouse fire). UEB continues communicating with this sub-borrower to find a mutually agreeable solution on debt restructuring. 9/24/2021 Page 1 of 6 The World Bank Implementation Status & Results Report Access to Long Term Finance (P156766) UEB has also presented a solid pipeline of 6 more projects totaling US$ 19.9 million. Of the six presented projects in the pipeline (via UEB), four are likely to be based on investment financing, and two – working capital financing. UEB also presented a plan to attract one more PFI with a total sub-financing of US$ 5 million. The proposed pipeline in the next moni toring period will represent a satisfactory pace of project implementation. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic High High High Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Low Low Institutional Capacity for Implementation and Low Low Low Sustainability Fiduciary Moderate Low Low Environment and Social Moderate Moderate Moderate Stakeholders Low Low Low Other -- High Substantial Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes To improve access to longer term finance for export oriented small and medium enterprises IN01021291 ►Ratio of the average maturity of SME sub-financing under the project, over the average maturity of the PFIs’ SME portfolio not financed under the project. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1.20 1.20 >1.00 Date 31-Mar-2017 01-Jan-2020 01-Jan-2021 30-Jun-2023 IN01021292 ►Number of SME beneficiaries financed by PFIs under the project (cumulative). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 9/24/2021 Page 2 of 6 The World Bank Implementation Status & Results Report Access to Long Term Finance (P156766) Value 0.00 40.00 36.00 130.00 Date 31-Mar-2017 28-May-2020 01-Jan-2021 30-Jun-2023 IN01021293 ►Based on Core Indicator: Volume of Bank Support: Lines of Credit - SME (cumulative, USD million). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 47.43 76.50 250.00 Date 31-Mar-2017 28-May-2020 22-Jul-2021 30-Oct-2023 Overall Comments PDO The indicator "Number of SME beneficiaries financed by PFIs under the project (cumulative)." was revised down to reflect the technical reporting mistake made in the previous reporting period (given that at the early stages of project implementation number of borrowers was equal to number of sub-loans issued), in which this indicator reflected the cumulative number of loans issued under the project. As of January 1, 2021, a total amount of 46 sub-loans has been issued to 36 unique beneficiary borrowers, given that some borrowers after positive first experience were returning to UEB for additional credit (within the maximum exposure per one borrower). Intermediate Results Indicators by Components Credit facility to provide financing to export oriented SMEs. IN01021294 ►Based on Core Indicator: Outstanding SME finance portfolio (USD million). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 2,107.00 1,780.00 n/a Date 31-Mar-2017 01-Jan-2020 01-Jan-2021 30-Jun-2023 IN01021295 ►Based on Core Indicator: Number of active SME finance accounts (not cumulative). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 1,419.00 943.00 n/a Date 31-Mar-2017 01-Jan-2020 01-Jan-2021 30-Jun-2023 IN01021296 ►Based on Core Indicator: Portfolio Quality: Portfolio at risk (%). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 40.95 49.50 47.20 n/a Date 30-Jun-2016 01-Jan-2020 01-Jan-2021 30-Jun-2023 IN01021297 9/24/2021 Page 3 of 6 The World Bank Implementation Status & Results Report Access to Long Term Finance (P156766) ►Based on Core Indicator: Financial Sustainability: Return on Assets (%) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -1.82 0.04 -3.36 n/a Date 30-Jun-2016 01-Jan-2020 01-Jan-2021 30-Jun-2023 IN01021298 ►Based on Core Indicator: Financial Sustainability: Return on Equity (%) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -299.79 0.80 -59.17 n/a Date 30-Jun-2016 01-Jan-2020 01-Jan-2021 30-Jun-2023 IN01021299 ►Number of active PFIs under the project (cumulative). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 3.00 Date 31-Mar-2017 28-May-2020 01-Jan-2021 30-Jun-2023 IN01021300 ►Gender: The first sub-finance from each PFI has been reviewed by the World Bank for gender bias, and remedial action has been taken accordingly. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Mar-2017 01-Jan-2020 01-Jan-2021 30-Jun-2023 IN01021301 ►Gender: Percent of SME beneficiaries financed under the project with at least 15 percent female participation in their workforce. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 86.40 86.10 70.00 Date 31-Mar-2017 01-Jan-2020 01-Jan-2021 30-Jun-2023 IN01021302 ►Compliance with prudential regulation. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 30-Jun-2016 01-Jan-2020 01-Jan-2021 30-Jun-2023 IN01021303 ►Citizen Engagement: SMEs that report that project sub-finance reflected their needs. (Text, Custom) 9/24/2021 Page 4 of 6 The World Bank Implementation Status & Results Report Access to Long Term Finance (P156766) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 31.00 36.00 >90 Date 31-Mar-2017 01-Jan-2020 01-Jan-2021 30-Jun-2023 IN01021304 ►Percentage of SMEs who believe that the Project has established effective engagement processes (through semi-annual roundtables and/or a survey) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a n/a n/a 70.00 Date 22-Jan-2021 22-Jan-2021 22-Jan-2021 30-Jun-2023 IN01021305 ►Share of the volume of financing provided to sub-borrowers with less than 250 employees (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 46% 46% 49.7% n/a Date 20-Nov-2020 20-Nov-2020 01-Jan-2021 30-Jun-2023 IN01021306 ►Share of female-led SMEs (i.e. have Director/CEO, Deputy/member of the Management Board, Chief Accountant/CFO or woman owning >50% stake or is the sole proprietor) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 84% 84% 70.00 Date 22-Jan-2021 22-Jan-2021 22-Jan-2021 30-Jun-2023 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P156766 IBRD-87270 Effective USD 150.00 150.00 0.00 88.87 61.13 59% Not P156766 IBRD-92540 USD 100.00 100.00 0.00 0.00 100.00 0% Effective Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P156766 IBRD-87270 Effective 02-May-2017 26-Jun-2017 12-Jun-2018 31-Mar-2022 31-Mar-2022 9/24/2021 Page 5 of 6 The World Bank Implementation Status & Results Report Access to Long Term Finance (P156766) Not P156766 IBRD-92540 28-May-2021 07-Jun-2021 -- 30-Jun-2023 30-Jun-2023 Effective Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) P175927-Ukraine Access to Long Term Finance COVID-19 Additional Financing 9/24/2021 Page 6 of 6