summary special-purpose project financial statements joint...

Summary Special-Purpose Project Financial Statements

Joint Stock Company "The State Export-Import Bank of Ukraine"

Access to Long Term Finance Project

As at 31 December 2018 andfor the period from the Loan Agreement effectivenessto 31 December2018Together with Independent Auditors' Report

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Contents

Independent Auditors' Report

Summary Special-Purpose Project Financial Statements

Sum m ary of Funds received ceived-- ........ -. --- .-------------------......... -.-............-. -1Sum m ary of E xpenditures .......e...n.. ........ ............ ............... ................................. ..... -- 2Statement of Designated Account ount -3_ ---- . .- 3Summary of Statement of Expenditures (SOEs) OE....s...-.-.-.4... _.__ .-...-. .. ...... 4Notes to the Summary Special-Purpose Project Financial Statementst.5 --.---.-.............. 5Supplemental Information on Sub-projects b-p- .................................. ._ .......... .. 7

Ernst & Young Audit Services LLC TOB <<EpHCT eHA qHr19A Khreshchatyk Street AygHTOpcbKi nocnyrm>>EY Kyiv, 01001, Ukraine syn. XpetwaTHK, 19ATel: +380 (44) 490 3000 KM(B, 01001, YKpaTHaBuilding a better Fax: +380 (44) 490 3030 Ten.: +380 (44) 490 3000workinq world www.ey.com/ua ODaKc: +380 (44) 490 3030

Report of the independent auditor on the summary special-purpose projectfinancial statements

To the Board of Directors of Joint Stock Company "The State Export-Import Bank of Ukraine"

Opinion

The summary special-purpose project financial statements of the Access to Long TermFinance Project ("ALTFP") administered by Joint Stock Company "The State Export-importBank of Ukraine" (the "Bank"), financed under the International Bank for Reconstruction andDevelopment (the "IBRD") Loan Agreement N 28727-UA (the "Loan Agreement"), whichcomprise the statement of designated account, the summary of funds received, the summaryof expenditures, and the summary of statement of expenditures (SOEs) for the period fromthe Loan Agreement effectiveness to 31 December 2018, and related notes (the "summaryspecial-purpose project financial statements"), are derived from the audited special-purposeproject financial statements of ALTFP for the period from the Loan Agreement effectivenessto 31 December 2018.

In our opinion, the accompanying summary special-purpose project financial statements areconsistent, in all material respects, with the audited special-purpose project financialstatements, in accordance with the financial reporting provisions of the "Guidelines: AnnualFinancial Reporting and Auditing for World Bank-Financed Activities" issued by the WorldBank and dated 30 June 2003 ("the World Bank's guidelines").

Summary special-purpose project financial statements

The summary financial special-purpose project statements do not contain all the disclosuresrequired by financial reporting provisions of the World Bank's guidelines. Reading thesummary special-purpose project financial statements and the auditor's report thereon,therefore, is not a substitute for reading the audited financial statements and the auditor'sreport thereon.

The audited special-purpose project financial statements and our report thereon

We expressed an unmodified audit opinion on the audited special-purpose project financialstatements of ALTFP in our report dated 28 May 2019. That report also includes AnEmphasis of matter - basis of accounting and restriction on distribution and use section thatdraws attention to Note 2 to the audited special-purpose project financial statements. Note 2to the audited special-purpose project financial statements describes the basis of accountingused in preparation of the special-purpose project financial statements. The special-purposeproject financial statements were prepared to assist the Bank in complying with the financialreporting provisions of the World Bank's guidelines. As a result, the special-purpose projectfinancial statements may not be suitable for another purpose. Accordingly, we draw attention

(i)9 A member firm of Ernst & Young Global Limitedf

EYBuilding a betterworking world

to Note 2 to the summary special-purpose project financial statements, which reproducesNote 2 to the audited special-purpose project financial statements and describes the basis ofaccounting used in the audited special-purpose project financial statements. As a result, thesummary special-purpose project financial statements may not be suitable for anotherpurpose. Our auditors' report on the special-purpose project financial statements dated28 May 2019 was intended solely for the Bank and the IBRD and should not be distributed toor used by parties other than the Bank or the IBRD. Accordingly, our auditors' report on thesesummary special-purpose project financial statements is also intended solely for use of thosesame parties and should not be distributed to or used by parties other than these specifiedparties.

Management's responsibility for the summary special-purpose project financial statements

Management is responsible for the preparation of the special-purpose project financialstatements in accordance with the financial reporting provisions of the World Bank'sguidelines referred to above.

Auditor's Responsibility

Our responsibility is to express an opinion on whether the summary special-purpose projectfinancial statements of ALTFP are consistent, in all material respects, with the auditedspecial-purpose project financial statements of ALTFP based on our procedures, which wereconducted in accordance with International Standard on Auditing (ISA) 810 (Revised),Engagements to Report on Summary Financial Statements.

Yulia St nska

PartnerFor and on behalf of Ernst & Young Audit services LLC

Kyiv, Ukraine

28 May 2019

Ernst & Young Audit Services LLC is includedin the Register of auditors and audit firms,registration number: 3516.

A member firm of Ernst & Young Global Limited

Joint Stock Company "The State Export-Import Bank of Ukraine"

Access to Long Term Finance ProjectSummary Special-Purpose Project Financial Statements

Summary of Funds ReceivedFor the period from the Loan Agreement effectiveness to 31 December 2018(in US dollars)

For the period from the LoanAgreement effectiveness to

31 December 2018

FINANCING RECEIVED:

JBRD financing:Designated Account payments 31,286,747Front end fee (Note 3) 375,000

Total IBRD financing 31,661,747

Signed and authorized for release on behalf of the Board

Chairman of the Board Oleksandr Hrytsenko

The accompanyin notes are an integral part of these summag special-purpose projectfinaneial statements1

Joint Stock Company "The State Export-Import Bank of Ukraine"Access to Long Term Finance ProjectSummary Special-Purpose Project Financial Statements

Summary of Expendituresfor the period from the Loan Agreement effectiveness to 31 December 2018(in US dollars)

For the period from the LoanAgreement effectiveness to

31 December 2018Category 1:Sub-loans to:JSC "Ukreximbank" 16,127,636

Sub-loan 1 5,893,690

Sub-loan 2 6,980,569

Sub-loan 3 1,095,264

Sub-loan 4 403,664

Sub-loan 5 103,959

Sub-loan 6 54,966

Sub-loan 7 307,563

Sub-loan 8 85,016

Sub-loan 9 218,221

Sub-loan 10 829,560

Sub-loan 11 55,164

Sub-loan 12 100,000

Participating Financial Institution 1 2,000,000

Sub-loan 13 2,000,000

Total sub-loans 18,127,636

Category 2:Front end Fee (Note 3) 375,000Total Project Expenditures 18,502,636

The aecompanying no/es are an integral part of these summay speia/-purpose project financial statements2


Statement of Designated Accountfor the period from the Loan Agreement effectiveness to 31 December 2018(in US dollars)

Account name Ukreximbank World Bank account

Related loan 8727-UA

Currency US dollars

Balance as at 12 June 2018 - principal

Balance as at 12 June 2018 - interest

Add:Advance payment 31,286,747IBRD replenishmentsTotal interest earnings -

31,286,747

Deduct:Sub-loans disbursed (18,127,636)Total interest accumulatedBank commissions

(18,127,636)

Balance as at 31 December 2018 - principal 13,159,111Balance as at 31 December 2018 - interest

The accompanying notes are an integral part of these summag special-purpose projectfinancia/statements3

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joint Stock Company "The State Export-Import Bank of Ukraine"Access to Long Term Finance ProjectSummary Special-Purpose Project Financial StatementsNotes to the Summary Special-Purpose Project Financial Statements(in US dollai-r unlesi- olbenvise illdicaled)

1. General Information

The Access to Long Term Finance Project (further referred as the "ALTF" or the "Project") is administered by the StateExport-Import Bank of Ukraine (the "Borrower", "Ukreximbank" or the "Bank") under a Loan Agreement with theInternational Bank for Reconstiuction and Development (the "IBRD"). The amount of the Loan Agreement #8727-UAdated 26 June 2017 (the "Loan Agreement") is USD 150,000,000. The Loan Agreement became effective on 12 June 2018(the Loan Agreement effectiveness).

The objective of the Project is to improve access to long term finance for export oriented small and medium enterprises.

2. Accounting Policies

Basis of preparation

The ALTF summary special-purpose project financial statements have been prepared in accordance with the "Guidelines:Annual Financial Reporting and Auditing for World Bank-Financed Activities" issued by the World Bank and dated 30June 2003.

The ALTF special-purpose project financial statements have been prepared on a cash basis in respect of loan fundsreceived from the IBRD and issued loans to selected beneficiary enterprises.

Revenue and expenditures of the ALTF are accounted for by the Bank on an accrual basis in its separate financialstatements, such incomes and expenditures are not recognised in these ALTF special-purpose project financial statements.

To comply with the requirements of the "Guidelines: Annual Financial Reporting and Auditing for World Bank-FinancedActivities" issued by the World Bank, the following specific schedules have been included as part of these ALTF summaryspecial-purpose project financial statements:" Summary of Funds received for the period from the Loan Agreement effectiveness to 31 December 2018;" Summ-ary of Expenditures for the period from the Loan Agreement effectiveness to 31 December 2018;" Statement of Designated Account for the period from the Loan Agreement effectiveness to 31 December 2018;" Summary of Statement of Expenditures for the period from the Loan Agreement effectiveness to 31 December

2018.

In addition, with respect to Statement of Expenditures ("SOEs") for the period from the Loan Agreement effectivenessto 31 December 2018, adequate supporting documentation has been maintained to support claims to the IBRD forreplenishments of expenditures incurred. Expenditures claimed for replenishment under the SOE procedure were eligiblefor financing under the Loan Agreement #8727-UA. Special-purpose financial statements were prepared for the periodfrom the Loan Agreement effectiveness to 31 December 2018.

These summary special-purpose financial statements were prepared by the Bank in order to comply with the World BankPolicy on Access to Information dated 1 July 2010, General Conditions for Loans dated 31 July 2010 and the LoanAgreement. According to the abovementioned documents, these summary special-purpose project financial statementsshall be made publicly available in a timely fashion and in a manner acceptable to the IBRD and which complies withprevailing Ukrainian banking laws and regulations. Therefore, these summary special-purpose project financial statementsdo not contain information which is not allowed to be disclosed according to the Ukrainian banking laws and regulations.

Reporting currency

These summary special-purpose project financial statements are presented in US dollars ("US dollars") unless otherwiseindicated.

5


Notes to the Summary Special-Purpose Project Financial Statements(in US dollars unless otherwise indicated)

3. IBRD Financing

International Bank for Reconstruction and Development financing is provided through Loan Agreement #8727-UA dated26 June 2017 between the IBRD, as the Lender, and Ukreximbank, as the Borrower. The obligations of the Borroweraccording to the Loan Agreement are guaranteed by the Ukrainian Government.

The Borrower paid to the IBRD a front end fee in the amount equal to 0.25% of the amount of the loan. On the date ofthe Loan Agreement becoming effective the IBRD, on behalf of the Borrower, withdrew from the loan account and paidto itself the front end fee of USD 375,000 not using Designated Account.

According to the Loan Agreement, the interest rate is calculated as the Reference Rate for the Loan Currency plus theVariable Spread. The interest is paid on 15 March and 15 September each year. The principal is to be paid by installmentssemi-annually on 15 March and 15 September beginning on 15 March 2022 through 15 March 2052. The closing date ofthe ALTF is 31 March 2022. The closing date is the date specified in the Loan Agreement, after which the IBRD may, bynotice to the Borrower, terminate the right to make withdrawals.

The Project consists of the following:

Part A. Credit facility to provide financing to export oriented SMEs;

(i) Ukreximbank on-lending through Participating Financial Institutions (the "PFI").

The establishment and operation of a credit facility within Ukreximbank for the provision of financing (through SubsidiaryFinancing Agreements) to selected PFIs to provide financing (through Sub-financing) to private export oriented SMEs tofinance the cost of carrying out Sub-projects.

(ii) Ukreximbank direct lending as PFI.

The establishment and operation of a credit facility within Ukreximbank for the provision of Sub-loans to private exportoriented SMEs to finance the cost of carrying out Sub-projects.

The table below sets forth the categories of items to be financed out of the proceeds of the loan:

Category Description of Category Part of the Project

(1) Sub-Loans Part A(2) Front end Fee

Details of the IBRD financing as at 31 December 2018 are as below:

Total line of credit Amounts disbursed Amounts undisbursedSub-Loans 149,625,000 18,127,636 131,497,364Front end Fee 375,000 375,000Balance of Designated Account - 13,159,111 (13,159,111)Total 150,000,000 31,661,747 118,338,253

4. Reconciliation of Amounts Shown as Received from the IBRD to Actual Expenditures Incurred

The supporting schedule to the reconciliation of amounts shown as received from the IBRD to actual expenditures of theALTF as at 31 December 2018 is as follows:

Category 1 Category 2 Designated TotalAccount

Accounted according to the IBRD data 16,286,747 375,000 15,000,000 31,661,747According to the Bank data 18,127,636 375,000 13,159,111 31,661,747Difference* 1,840,889 - (840,889)

* The proceeds of the loan were used by Ukreximbank for financing under Category 1. The stterment of expenditures for USD 1,840,899 was scntto IBRD on 30 january 2019. The 1BRD transferred the proceeds of the Loan to the Designated Account in 2019.

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