The European Bank for Reconstruction and Development (EBRD) is providing an unfunded portfolio risk-sharing facility to ProCredit Bank Ukraine, to unlock €70 million of new financing for Ukraine’s private sector amid the ongoing war in the country.
The EBRD’s facility will cover up to 50 per cent of ProCredit Bank Ukraine’s credit risk on newly issued sub-loans worth €70 million to private businesses operating in Ukraine.
This facility will boost ProCredit Bank Ukraine’s lending capacity, enabling it to provide much-needed funding to Ukrainian private companies operating in critical industries such as agriculture, manufacturing, transport and pharmaceuticals. The funding will help companies continue their operations and safeguard livelihoods, which is crucial for fostering economic resilience and will enable Ukraine to rebuild once the war is over.
The fourth such instrument provided by the EBRD to ProCredit Bank Ukraine since the start of the war, the new facility will build on the successful utilisation of previous portfolio risk-sharing products, bringing the total volume of EBRD-enabled financing by ProCredit Bank Ukraine to €165 million.
Up to 15 per cent of the risk-shared loans will help private small and medium-sized businesses (SMEs) make long-term investments in European Union-compliant and green technologies, improving their competitiveness in domestic and foreign markets. To support those investments, eligible sub-borrowers will have access to EU-funded technical assistance and grant incentives on completion of their investment projects under the EU4Business initiative.
The EBRD facility will be supported by first-loss risk cover funded by the United States of America via the EBRD Crisis Response Special Fund as part of the Bank’s resilience package arrangements.
ProCredit Bank Ukraine is a commercial bank and a leading SME lender in Ukraine. The bank offers a full range of conventional banking products to its 5,750 SME clients and more than 20,000 private clients.
The EBRD has deployed more than €4 billion in Ukraine since the start of the war. As well as support for the private sector, its strategic priorities in the country are supporting energy security, vital infrastructure, food security and trade.
