EUR 20 mln Guarantee for OTP Leasing Ukraine Operations by EBRD
The European Bank for Reconstruction and Development is supporting agribusiness and other critical industries in Ukraine by providing a EUR 20 million unfunded risk-sharing instrument to OTP Leasing, EBRD said on Tuesday, according to a report by state news wire MTI.
The instrument will enable OTP Leasing to support private companies in agriculture and other critical industries, from food processing to retail, logistics, and pharmaceuticals. It will also support long-term capital investments of micro-, small and medium-sized enterprises to upgrade their technologies and equipment, stimulating the uptake of greener technologies.
The facility will cover up to 50% of the credit risk of EUR 80 mln in newly originated contracts by OTP Leasing, subject to a portfolio cap of 50%. It brings the total volume of similar guarantees signed since the start of Russia's full-scale war on Ukraine up to EUR 368 mln, the EBRD said.
OTP Leasing has an approximate 45% share of the leasing market in Ukraine, it noted.
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