Redcliffe Partners advised EBRD on sovereign bonds guarantee to Raiffeisen Bank Ukraine

Redcliffe Partners team assisted EBRD with an innovative deal – a EUR 75,000,000 guarantee to Raiffeisen Bank Ukraine (RBUA). The guarantee will cover the risk of non-payment of local currency sovereign bonds held by RBUA.
EBRD’s guarantee will free up Raiffeisen’s credit capacity at thegroup level, which will allow RBUA to allocate fresh funds for the financing of Ukrainian businesses. RBUA’s lending under the mechanism will have a particular focus on supporting local micro, small and medium businesses, which are especially important for the development of Ukraine’s economy. The parties have also agreed that at least 30% of the freed-up capacity will be used to finance environmentally friendly and sustainable technologies.
For the purposes of its implementation Redcliffe Partners team analysed complex domesticbonds legislation and developed sophisticated Ukrainian law instruments to protect EBRD’s rights as a guarantor.
The Redcliffe Partners team advising on this matter consisted of Olexiy Soshenko, partner, Olesia Mykhailenko, counsel and Sevastian Viktoruk, junior associate from the Banking & Finance practice.

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