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: 2 | ARCHIVED on 03-Jun-2019 | ISR37315 | 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: 30-Sep-2019 Actual Mid-Term Review Date: -- Original Closing Date: 31-Mar-2022 Revised Closing Date: 31-Mar-2022 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 $150.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Implementation Status: The ALTF $150 million project maintains a good implementation dynamic approaching the first full year of its implementation since declaration of effectiveness on 12 June 2018. The volume of disbursed sub-projects reached $41.9 million by May 16, 2019 (or 28% of the total project amount) distributed among 27 direct borrowers and 1 via PFI. UEB has presented a project pipeline of 9 more direct loans. The Bank team expects that UEB to maintain the achieved pace of project implementation, however for this a critical task is to engage more participating financial institutions into the project. Key decision: UkrEximBank should increase the number of active PFIs to at least two by the next review. 6/3/2019 Page 1 of 5 The World Bank Implementation Status & Results Report Access to Long Term Finance (P156766) 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 Moderate Moderate Institutional Capacity for Implementation and Sustainability Low Low Low Fiduciary Moderate Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Low Low Low Other -- Moderate Moderate Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes To improve access to longer term finance for export oriented small and medium enterprises IN00708454 ►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 >1.00 1.20 >1.00 Date 31-Mar-2017 04-Oct-2018 01-Jan-2019 31-Dec-2021 IN00708455 ►Number of SME beneficiaries financed by PFIs under the project (cumulative). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 28.00 60.00 Date 31-Mar-2017 04-Oct-2018 16-May-2019 31-Dec-2021 IN00708476 ►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 6.40 41.90 150.00 6/3/2019 Page 2 of 5 The World Bank Implementation Status & Results Report Access to Long Term Finance (P156766) Date 31-Mar-2017 04-Oct-2018 16-May-2019 31-Mar-2022 Intermediate Results Indicators by Components Credit facility to provide financing to export oriented SMEs. IN00708477 ►Based on Core Indicator: Outstanding SME finance portfolio (USD million). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 1,575.00 1,678.00 n/a Date 31-Mar-2017 01-Oct-2018 01-Jan-2019 31-Dec-2021 IN00708478 ►Based on Core Indicator: Number of active SME finance accounts (not cumulative). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 1,466.00 1,478.00 n/a Date 31-Mar-2017 01-Oct-2018 01-Jan-2019 31-Dec-2021 IN00708479 ►Based on Core Indicator: Portfolio Quality: Portfolio at risk (%). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 40.95 38.00 42.50 n/a Date 30-Jun-2016 01-Oct-2018 01-Jan-2019 30-Jun-2021 IN00708480 ►Based on Core Indicator: Financial Sustainability: Return on Assets (%) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -1.82 0.78 0.56 n/a Date 30-Jun-2016 01-Jul-2018 01-Jan-2019 30-Jun-2021 IN00708481 ►Based on Core Indicator: Financial Sustainability: Return on Equity (%) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -299.79 11.46 8.19 n/a Date 30-Jun-2016 01-Jul-2018 01-Jan-2019 30-Jun-2021 IN00708482 ►Number of active PFIs under the project (cumulative). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 2.00 6/3/2019 Page 3 of 5 The World Bank Implementation Status & Results Report Access to Long Term Finance (P156766) Date 31-Mar-2017 04-Oct-2018 01-Jan-2019 31-Dec-2021 IN00708483 ►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 04-Oct-2018 01-Jan-2019 31-Dec-2021 IN00708484 ►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 0.00 100.00 82.40 n/a Date 31-Mar-2017 04-Oct-2018 01-Jan-2019 31-Dec-2021 IN00708485 ►Compliance with prudential regulation. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 30-Jun-2016 01-Oct-2018 01-Jan-2019 31-Dec-2021 IN00708486 ►Citizen Engagement: SMEs that report that project sub-finance reflected their needs. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 16.00 >90 Date 31-Mar-2017 04-Oct-2018 01-Jan-2019 31-Dec-2021 Overall Comments IR The portfolio-at-risk numbers reported in this ISR (42.5% as of January 01, 2019) is based on most recent audited results and is higher than 38% reported in the previous ISR (38% as of 1 October 3028) due to the reason that 3Q18 number was based on local unaudited number which did not take into affect implementation of IFRS 9. IFRS based level of portfolio at risk is as follows: as of July 01, 2018 - 41,5%, as of October 10, 2018 43,3%, as of April 01,2019 - 44,8%. The growth of the share of the portfolio-at-risk in Q1 is explained by the effect of contraction in the denominator - the loan book - given that the bank according to scheduled repayments of big loans was aiming at accumulation of the liquidity needed for the Eurobonds repayment in April. Data on Financial Performance 6/3/2019 Page 4 of 5 The World Bank Implementation Status & Results Report Access to Long Term Finance (P156766) 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 41.94 108.06 28% 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 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/3/2019 Page 5 of 5