In a strategic move to fortify economic progress in Ukraine, the European Bank for Reconstruction and Development (EBRD) has announced its collaboration with OTP Leasing to extend a significant guarantee.
The guarantee, encompassing 50% coverage of OTP Leasing’s new subleasing contracts totaling up to €80 million, marks a pivotal advancement in extending essential financial aid to SMEs in the nation. This financial boost will be distributed in two tranches, with the initial €40 million tranche already confirmed.
The primary objective of this endeavour is to provide crucial financial assistance to Ukrainian enterprises, particularly those operating in pivotal sectors like primary and secondary agriculture, food industry, retail trade, and logistics. By easing access to financing, the initiative strives to ignite growth and innovation within these crucial industries, fostering economic resilience and development.
A significant portion of the allocated funds, approximately 70%, will be directed towards financing long-term capital investments aimed at modernising technologies and equipment to align with EU standards. This includes investments in green technologies, in line with global sustainability goals and environmental stewardship.
Additionally, sub-borrowers under this programme will have the opportunity to avail themselves of EU-funded technical assistance and grant support upon the successful completion of their investment projects. This additional support serves as a compelling incentive for businesses to pursue sustainable growth strategies, furthering the overall economic and environmental objectives of the initiative.
OTP Leasing, a Ukrainian entity established in 2008 and affiliated with the European financial OTP Group, plays a pivotal role in facilitating leasing solutions for businesses across various sectors. With a leasing portfolio amounting to $268 million by 2023, representing approximately 41% of the market share, OTP Leasing has solidified its position as a key enabler of growth and development within the Ukrainian economy.
