EBRD plans to cover up to 50% Raiffeisen Bank Ukraine's new loans for 100 mln euros

MOSCOW. April 26 (Interfax) - The European Bank for Reconstruction and Development (EBRD) may provide a risk-sharing facility covering up to 50% of the credit risk in sub-loans with the total value of up to 100 million euro equivalent to be originated by Raiffeisen Bank JSC in Ukraine, Ukrainian media said, citing an EBRD press release.

"The Facility will be used to support lending to Ukrainian private companies operating in the primary and secondary agriculture and other critical industries (inter alia food processing, retail, logistics), with the ultimate goal of preserving livelihoods in Ukraine," the EBRD said.

The EBRD Board of Directors is due to review the project on May 24 of this year. The financing will be delivered in two tranches. Only the first tranche of 60 million euros has already been confirmed.

The project also includes a 20% sub-limit of the covered portfolio to finance long-term investments in micro, small and medium-sized enterprises to upgrade their technologies and equipment to EU standards, including investments in sustainable and green technologies (at least 70% of the sub-limit), thereby enhancing businesses' competitiveness.

"The EU and the U.S. complement the offer with incentive grants and technical assistance under its EU4Business initiative," the EBRD said.

According to the National Bank of Ukraine, Raiffeisen Bank, Kiev, was Ukraine's fourth largest bank by total assets (212.15 billion hryvni) out of 63 banks operating in the country as of March 1, 2024.