Ukraine's Oschadbank receives 2nd tranche of EBRD's guarantee to cover 75 mln euros of covered portfolio
MOSCOW. Oct 17 (Interfax) - The European Bank for Reconstruction and Development (EBRD) has provided the Kiev-based state-owned Oschadbank with the second tranche of the portfolio risk-sharing facility for lending to Ukrainian small- and medium-sized enterprises (SMEs) in the amount of 75 million euros, Ukrainian media quoted the financial institution as saying in a statement.
"These funds will significantly reduce collateral requirements for borrowers, making these loans more affordable. A significant share of the risk-shared sub-loans will be used to support vulnerable groups of borrowers," the statement said.
Businesses will also receive EU-funded technical assistance and investment incentives upon completion of investment projects under the EU4Business initiative, it said.
Up to 15 million euros (in equivalent) of the risk-shared loans under this tranche will support private micro-, small- and medium-sized businesses' (MSMEs') long-term investments in EU-compliant technology, including green technology, which is expected to enhance the competitiveness of businesses both on the domestic and foreign markets, it said.
Oschadbank received the first EBRD's tranche of 50 million euros in April this year, which was utilized ahead of schedule, it said.
As reported, the EBRD's facility covered up to 50% of Oschadbank's credit risk on newly issued sub-loans worth 200 million euros to private companies operating in Ukraine. The financing is provided in three tranches: the first tranche includes 12.5 million euros of the EBRD's guarantee to cover 50 million euros of the covered portfolio, and two tranches include up to 18.75 million euros of the EBRD's guarantee to cover 75 million euros of the covered portfolio each.
As of September 1, 2024, Oschadbank ranked second (UAH 425.75 billion) in terms of total assets among 62 banks in Ukraine, the National Bank of Ukraine (NBU) said. The net profit of the bank totaled UAH 11.18 billion for the first eight months of this year.
