The European Bank for Reconstruction and Development (EBRD) announced on 7 March that it would extend an unfunded portfolio risk-sharing facility to Ukraine’s OTP Leasing to unlock €160 million of new finance for Ukraine’s businesses amid Russia’s ongoing war on Ukraine.
The EBRD’s facility will cover up to 50 per cent of OTP Leasing’s credit risk on new leasing finance worth €160 million to businesses operating in Ukraine. This credit enhancement mechanism enables OTP Leasing to provide sub-leases to companies in critical industries, such as agribusiness, manufacturing, pharmaceuticals, transport, and logistics. The facility will support the operations of Ukrainian companies and preserve access to critical goods.
This is the fifth such facility that the EBRD has provided OTP Leasing since the start of the full scale war. Total enabled financing under similar EBRD guarantees to Ukraine’s financial institutions signed since the start of Russia’s war on Ukraine amounts to more than €2 billion.
Up to 30 per cent of the risk-shared loans will support the long-term investments of private micro, small and medium-sized enterprises (MSMEs) in EU-compliant and green technologies, helping to boost their competitiveness on domestic and foreign markets under the EU4Business-EBRD Credit Line. Eligible sub-borrowers will also receive EU-funded technical assistance and investment incentives upon completion of their projects under the EU’s Ukraine Investment Framework (UIF).
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