OTP Leasing received a loan from the German government agency

On June 19, a subordinated loan agreement was signed between the German KfW Development Bank on behalf of the German government and OTP Leasing. Subordinated loan was provided under the Agrofinance program. This is the first subordinated loan in Ukraine provided to a leasing company.

According to OTP Leasing, it will strengthen the capital and allow the company to attract new loans from international lenders. As a result, OTP Leasing will be able to substantially expand its business, which especially small and medium-sized enterprises in the agrarian sector will be available to receive financing through the leasing services provided by OTP Leasing. As follows, the funds received due agreement between KfW and OTP Leasing will mainly be directed to the development of financing services in Ukrainian agrarian industry.

“KfW, on behalf of the German government, improves access to finance for small and medium-sized enterprises (SMEs). Until now KfW has been cooperating with the Ukrainian financial sector with banks. However, leasing is a good alternative to bank loans, especially for SMEs, in the agrarian sector. Therefore, we are very pleased with our new partner – OTP Leasing, and by providing subordinated loan to it, we are launching a new financial instrument in Ukrainian leasing, “said Mr. Lutz Horn-Haecke, director of KfW in Kyiv.

OTP Leasing receives 17 million dollars  for 7 years with payment at the end of the term. The resulting loan will allow to provide more leasing operations for Ukrainian companies this year – $ 180 million instead of the planned $ 100 million. “For OTP Leasing this is a real boost in working capital. The loan will allow us to provide work with small and medium businesses and will further increase our share in the leasing market, which today is about 40-45% “, – emphasizes Andriy Pavlushin, General Director of OTP Leasing.

“For the Ukrainian business and for the agrarian industry as a whole, the agreement between OTP Leasing and KfW is an important signal, because KfW is a large state-owned European market maker,” said the senior manager of the leasing company.

Source: https://www.otpleasing.com.ua