Redcliffe Partners advises EBRD on risk sharing arrangements with Raiffeisen Bank Aval

Redcliffe Partners acted as a legal counsel to EBRD in relation to the unfunded risk participation agreement with Raiffeisen Bank Aval of a total value of EUR20 million. By means of the risk sharing arrangement EBRD and Raiffeisen Bank Aval will share credit risk in certain loans to be provided by Raiffeisen Bank Aval to its clients.

In order to become eligible for relevant Raiffeisen Bank Aval loans 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 and business practices.

The risk sharing concept is new for Ukraine. To make it work as intended by the parties, Redcliffe developed a number of sophisticated Ukrainian law structures. In addition to this, Redcliffe lawyers reviewed the risk participation agreement and from the perspective of Ukrainian law, analysed tax and provisioning issues, and implemented standard EBRD provisions in the local loan and security agreement templates.

Redcliffe’s team comprised Olexiy Soshenko, managing partner, and Olesia Mykhailenko, associate.

Clifford Chance advised EBRD on the English law aspects of the transaction.