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EBRD to take 50% of credit risks under new OTP Leasing agreements in agriculture for EUR 19.5 mln
KYIV. May 2 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) will take 50% of the credit risks under new leasing agreements to ensure food security for a total amount of EUR 19.5 million for OTP Leasing LLC, the leading Ukrainian leasing company.
"The Facility is provided in the extraordinary circumstances of the ongoing war on Ukraine, serving as a significant risk mitigating instrument to enable financing of critical agri-related industries," the bank said on its website.
The board of directors of the bank approved these projects on April 22.
The EBRD said that the Facility will support food security in Ukraine by enhancing PCBU’s lending capacity and providing much needed access to finance for Ukrainian private companies operating in critical agri-related industries (farming, food and agri produce processing, transportation and imports), with the ultimate goal of preserving livelihoods in the country.
OTP Leasing LLC is a part of the European financial group OTP Group. The company was founded in June 2008 as a subsidiary of OTP Bank. The company currently has 2,000 customers and 170 employees. According to the EBRD, OTP Leasing occupied about 39% market share in terms of leasing portfolio ($505 million) as of the end of 2021. The company financial leases and fleet management services to corporate and MSME clients across the country.
Andriy Pavlushyn, CEO of OTP Leasing, announced on April 6 that after a 41-day break, OTP Leasing again began financing existing proven agricultural clients of medium and small-sized businesses, "those clients who paid invoices for March on time." Then, less than two weeks later, he said that the company had already purchased agricultural equipment worth UAH 100 million since the beginning of the war and intended to increase purchases to UAH 1 billion this spring.
