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PART II

INFORMATION REQUIREMENTS FOR THE RISK MANAGEMENT UNIT (GREG)

Any information provided in this Application Form should refer to exposures proposed for guarantee coverage under the UIF and should be validated by the internal risk function of the Implementing Partner.
It is understood that some of this information may only be available on the signing of underlying transactions. When not available at proposal stage, please provide assumptions.
On the other hand, if more granular information is available (e.g. provisional pipeline), please provide relevant risk parameters separately (see tab Annex - Pipeline).
Should the proposal receive a positive opinion from the UIF Steering Board, these risk metrics should be confirmed at contracting stage. Deviations from the initial proposal will be considered on a case by case basis and should be duly justified.
Where confidential, the information will be handled accordingly and submitted separately to the GREG.
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General Information and Identification
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DateComments, if anyGuidance for filling-in the form
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Name of Proposed Investment Programme (PIP)*
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Name of Implementing Partner*
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Counterpart Category *Please select from the drop-down menu the category that best describes the counterpart; if 'other', please provide more information in the comments.
This is understood as the party whose payment or performance is secured by the Guarantee. Multiple answers are possible.
Please also indicate if the counterpart (or the covered asset) will be backed by a state guarantee.
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Counterpart Industry Sector *Please select from the drop-down menu the category that best describes the counterpart industry sector, in line with GICS definitions where applicable. If 'other', please provide more information in the comments.
Multiple answers are possible. If so, please provide percentage estimates for the different industry sectors.
In case of doubt, please consult the GICS Industry Groups and the latest GICS methodology on https://www.msci.com/our-solutions/indexes/gics
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Target country *UkraineIn line with the UIF legal basis, the 'target country' is understood as being Ukraine only. If available, please provide information on the exact region/oblast of the project.
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Guarantee Type*Please select from the drop-down menu the applicable guarantee type. If 'other', please provide more information in the comments.
According to the definitions in use by the GREG, a line-by-line guarantee covers individual projects/loans/counterparts, whilst a portfolio guarantee is available to cover multiple underlying assets within a portfolio up to the total amount guaranteed under the UIF, i.e. there is a 'mutualisation' of losses (and of gains, in case of equity guarantees) within the portfolio.
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UIF Guarantee cover amount in EUR*Please specify the requested UIF Guarantee coverage amount in EUR and add any relevant details in the comments.
E.g. if the requested UIF coverage is for 50% of a first loss tranche of 10% on an asset of EUR 100m, please input EUR 5m (=50% x 10% x EUR 100m) in Column E and indicate the respective details of UIF tranche positioning in row 14 below ('Seniority/positioning of the UIF exposure').
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Seniority of the covered asset*Where applicable, please indicate the seniority in the capital structure of the asset whose default would trigger a claim under the UIF guarantee. For example, should UIF cover senior debt in an overall structure featuring also an equity buffer, the seniority of the covered asset would be 'senior debt'.
In case of multiple answers (i.e. different asset classes foreseen under the same PIP), please provide separate risk parameters for each and clarify as appropriate in the comments.
This information should be complemented by a visual representation of the overall financial structure in Part I of the Application Form, with clear indication of amounts and seniority of the UIF-covered asset.
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Seniority/positioning of the UIF exposure*For tranched structures, please select from the drop-down menu the option that best describes the seniority/positioning of the UIF exposure within the structure of the covered asset.
For instance, using the same example provided in row 13, should UIF cover an FLP within the senior debt, the 'seniority/positioning of the UIF exposure' should be 'FLP'.
For full pari passu structures (i.e. where the exposure on the underlying asset is shared pro rata, without tranching), the 'seniority/positioning of UIF exposure' should be 'pari passu / pro rata'.
If 'other', please provide more information in the comments.
This information should be complemented by a visual representation of the financial structure and envisaged risk sharing in Part I of the Application Form, reflecting the seniority/positioning and thickness of each tranche.
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UIF tranche attachment point*Please provide, as a decimal value between zero and one, the attachment point of UIF tranche. The attachment point indicates the minimum share of losses at which a given tranche begins to suffer losses.
For full pari passu structures (i.e. where the exposure on the underlying asset is shared pro rata, without tranching), the attachment point would be 0.
For the avoidance of doubt, the attachment and detachment points (see also row 16) should refer to the UIF-covered tranche as a whole. Any risk sharing within the tranche should be reflected in row 17 ('UIF coverage within the tranche').
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UIF tranche detachment point*Please provide, as a decimal value between zero and one, the detachment point of the UIF tranche. The detachment point corresponds to the share of losses where the tranche is fully consumed.
For full pari passu structures (i.e. where the exposure on the underlying asset is shared pro rata, without tranching), the detachment point would be 100.
For the avoidance of doubt, the attachment and detachment points (see also row 15) should refer to the UIF-covered tranche as a whole. Any risk sharing within the tranche should be reflected in row 17 ('UIF coverage within the tranche').
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UIF coverage within the tranche*Please provide the % of the UIF coverage within the tranche.
For this purpose, full pari passu structures (i.e. where the exposure on the underlying asset is shared pro rata, without tranching) should be understood as a 100% tranche, in line with rows 15 and 16 above.
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Currency of the underlying exposures Where appropriate, please also provide details on the hedging arrangements to be put in place, as the UIF does not cover FX risk.
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Other relevant information, if anyPlease provide standard financial and non-financial covenants that would apply.
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Amortization Profile
If data on underlying operations is available at this stage, a more detailed amortisation profile should be provided in the Annex.
If not, please provide assumptions at PIP level. Where appropriate, these could be provided as a range.
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Underlying Covered Asset Amount in EUR *Please indicate the notional EUR amount of the underlying covered asset that will form the basis of the UIF cover, e.g. in case of UIF cover for loans, the full amount of the loan covered; in case of UIF cover for portfolios, the total notional of the portfolio; in case of project finance, the full project amount.
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Maturity (in years) *Please indicate the envisaged contractual maturity of the underlying covered asset in years. Where appropriate, e.g. in case of guarantees on loan portfolios, please provide also the maturity of the covered portfolio.
Maturity is understood as the envisaged time period from the signature (e.g. of the loan agreement) to the full repayment. Where appropriate, it can be expressed as a range.
If not known at proposal stage, please provide assumptions. In this case, the lower range (i.e. longer maturity) should be understood as the worst-case scenario the Implementing Partner is willing to commit to.
Clarifications should be provided, as appropriate, in the comments.
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Weighted Average Life (WAL)For portfolio guarantees, please provide the Weighted Average Life of the UIF tranche (i.e. with reference to the seniority/positioning of UIF exposure, see row 14).
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Repayment Structure *Please select from the drop-down menu the option that best describes the repayment structure of the underlying covered asset. Where appropriate, e.g. in case of guarantees on loan portfolios, please provide also the repayment structure of the covered portfolio. If 'other', please provide more information in the comments.
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Exposure Build-up / Disbursement Period (in years) *Please indicate the exposure build-up / disbursement period in years. This is understood as the envisaged time period from the signature to the last disbursement of the underlying covered asset. Where appropriate, e.g. in case of guarantees on loan portfolios, please provide also exposure build-up / disbursement period of the covered portfolio.
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Grace Period (in years) *Please indicate the grace period in years. This is understood as the time period from the end of Exposure Build-up Period of the underlying transactions to when the repayment will start. Where appropriate, e.g. in case of guarantees on loan portfolios, please provide also the exposure build-up / disbursement period of the covered portfolio.
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Repayment Frequency *Please select from the drop-down menu the option that best describes the repayment frequency of the covered transactions. Where appropriate, e.g. in case of guarantees on loan portfolios, please provide also the repayment frequency of the covered portfolio.
If 'other', please provide more information in the comments.
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Other relevant information, if any
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Credit Risk Ratings
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Probability of Default (PD) Rating (average scenario) *Please select from the drop-down menu the applicable GEMs rating at the PIP level. Please provide the average expected rating.
Important to note that the GREG uses the GEMs master scale as its common rating scale. Implementing Partners who are members of the GEMs Consortium should, therefore, provide a GEMs rating. Implementing Partners who are not members of the GEMs Consortium are strongly encouraged to undergo the audited mapping of their internal rating systems to the GEMs master scale before TAM submission.
Kindly note that a weighted average PD rating (GEMs rating or 1y PD, as applicable) will have to be reported during the ramp up period.
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Probability of Default (PD) Rating (worst-case scenario) *Linked to row 28 above - please select from the drop-down menu the applicable GEMs rating for the PIP. Please provide the worst projected rating.
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1 Y PD (%) (average scenario)For Implementing Partners who are not yet members of the GEMs Consortium, please provide the numerical 1-year PD rate of the internal rating at the PIP level. Please provide the average expected rate.
Kindly note that a weighted average PD rating (GEMs rating or 1y PD, as applicable) will have to be reported during the ramp up period.
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1 Y PD (%) (worst-case scenario)Linked to row 30 above - please provide the worst expected rate.
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Expected Loss (EL), lifetime If UIF tranche metrics are available, please provide Expected Loss (EL) for portfolio guarantees. This should be provided at tranche level (i.e. with reference to the seniority/positioning of UIF exposure).
EL should preferably be provided in EUR equivalent. If as a %, please indicate if it refers to the portfolio nominal or the tranche nominal.
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Other relevant information, if any
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Recovery Rate (RR) and Skin in the Game
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Recovery Rate (RR) (average scenario)*Please provide RR (or 1-LGD) for the exposure guaranteed by the UIF and provide substantiation / explanation on its calculation and available benchmarking in the comments. Please indicate the average case scenario.
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RR (worst-case scenario)*Linked to row 35 above - please indicate the worst-case scenario.
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SITG (Skin In The Game) *Please select from the drop-down menu, only one answer is possible and can be further elaborated in the comments.
Important to note that the GREG will assess alignment of interest across the implementation chain, in line with the EFSD+/UIF Risk Management Framework. For this purpose, it will generally require at least 10% co-investment pari passu by the IP and co-investors, where applicable, at least 30% at the level of local financial intermediaries or other commercial partners, in case of pass-through structures and MSME intermediated lending.
Pass-through structures, where a DFI partner passes the guarantee down to the next level without taking a position, will be considered if the overall structure ensures robust alignment of interest and the own resources requirement of the Financial Regulation is still fulfilled at the UIF level for that particular Implementing Partner.
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Other relevant information, if any
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* mandatory information for modelling purpose
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