Long-term leasing from OTP Leasing (Ukraine) will encourage continuous business activity.
• EBRD loan of € 15 million for 4 years for OTP Leasing (Ukraine)
• Long-term lending in euro and local currency to support Ukrainian SMEs
• EU4Business-supported project with EU4Business incentive grants
The EBRD and the leading Ukrainian leasing company OTP Leasing (OTPL) are helping local small and medium-sized enterprises (SMEs) to continue their operations, despite the current market situation caused by the spread of coronavirus (COVID-19). OTPL’s senior 4-year EBRD loan of up to € 15 million will facilitate long-term SME leasing operations across the country. The funding will be provided under the EU4Business-EBRD Credit Facility, which is being implemented in the context of the Deep and Comprehensive Free Trade Area (DCFTA) between the European Union (EU) and Ukraine.
Following the decision of the Board of Directors of the EBRD to provide a package of solidarity assistance to clients in all countries, including Ukraine, the Bank is not only continuing its normal operations but is also ready to increase the amount of assistance if necessary.
The financing will be available to OTPL clients in UAH and/or Euro. Hryvnia lending will protect borrowers from currency risks and will be offered with longer maturities.
In addition, the EU will provide eligible companies with grants as investment incentives that will reduce the cost of capital investments for these companies to modernize technology and manufacturing processes in accordance with EU standards and regulations.
The Managing Director of the EBRD for Eastern Europe and the Caucasus, Matteo Patrone, said: “The agreement we signed with our partners at OTP Leasing (Ukraine) demonstrates that we plan to develop the business for the long term. We are especially grateful to the EU for its continued commitment to our common goals in a difficult time. Customers from the private and public sectors, including SMEs, can fully rely on our support and flexibility. Our goal is to maintain the record level of investment we reached in 2019 and use our resources in the areas where we need them most. ”
Andrey Pavlushin, CEO of OTP Leasing, said: “We are very pleased to have signed a four-year agreement with the EBRD for a total of EUR 52 million. Today’s transaction will help us fund at least 100 companies across the country. For us, this is an opportunity to increase our market share in the SME segment, as well as to diversify our portfolio. ”
“The proceeds will be used to finance small and medium-sized businesses for the purchase of new machinery and transport. Together with the financing, the lessee will receive a grant – 10% compensation from the amount of financing, ”added Janina Gorenko, First Deputy CEO of OTP Leasing.
OTP Leasing LLC is a registered company in Ukraine owned by OTP Bank (Hungary) and has been active in the Ukrainian market for over 10 years. EBRD’s new loan will allow OTPL to extend leasing terms and provide local currency financing.
The EBRD is a leading institutional investor in Ukraine and has already committed to providing more than € 14.54 billion under more than 460 projects in the country.