29
Fri, Mar
38 New Articles

Redcliffe Partners and Clifford Chance Advise EBRD on Risk Sharing Arrangements with Ukrsibbank

Redcliffe Partners and Clifford Chance Advise EBRD on Risk Sharing Arrangements with Ukrsibbank

Ukraine
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

Redcliffe Partners has worked with Clifford Chance in advising EBRD on unfunded risk participation agreements with Ukrsibbank valued at up to USD 50 million. 

The arrangement will allow Ukrsibbank to share with EBRD the risks of non-performance of Ukrsibbank borrowers. The EBRD's risk sharing program is aimed at restarting lending in Ukraine, as well as supporting sound lending practices.

According to Redcliffe, "the concept of risk sharing is not known to Ukrainian law. Therefore, for the purposes of the project, Redcliffe assisted in developing a sophisticated structure to implement the intended risk sharing in Ukraine. Also, Redcliffe reviewed the risk participation agreement and related documentation from the perspective of Ukrainian law, negotiated with Ukrsibbankand upgraded the local loan templates to EBRD’s standards."

In addition, the firm reports, "the signed risk sharing agreement will allow EBRD to induce, inter alia, lending by Ukrsibbank to the local market in different currencies (including the Ukrainian hryvnia) to medium and small Ukrainian businesses. In order to become eligible for loans risk shared by EBRD, the Ukrainian companies will need to comply with the highest business standards, conduct their business with due diligence and efficiency, and in accordance with sound engineering, financial, business and environmental practices."

Redcliffe’s team included Managing Partner Olexiy Soshenko and Associate Olesia Mykhailenko.

Clifford Chance advised the EBRD on English law aspects, their lead partner working on the deal being Jared Grubb.

 

Ukraine Knowledge Partner

AVELLUM is a leading Ukrainian full service law firm with a key focus on Finance, Corporate, Dispute Resolution, Tax, and Antitrust.

Our aim is to be the firm of choice for large businesses and financial institutions in respect of their most important and challenging transactions.

We build lasting relationships with our clients and make them feel secure in new uncertain economic and legal realities.

We incorporate the most advanced Western legal techniques and practices into our work. By adding our first-hand knowledge, broad industry experience, and unparalleled level of service we deliver the best results to our clients in their business endeavours. Our partners are taking an active role in every transaction and ensure smooth teamwork.

AVELLUM is recognised as one of the leading law firms in Ukraine by various international and Ukrainian legal editions (Chambers, The Legal500, IFLR1000, The Ukrainian Law Firms, and others).

Firm's website: www.avellum.com

 

Our Latest Issue