New risk-sharing EBRD program for OTP BANK allows to provide 200 mill euro of landing
OTP BANK JSC in collaboration with the European Bank for Reconstruction and Development (EBRD) and with the support of the European Union, is launching a new portfolio risk-sharing program. This initiative will enable the provision of up to €200 million in financing for Ukraine’s private sector during the ongoing war. The program focuses primarily on supporting and enhancing the competitiveness of agribusiness and other critical sectors of small and medium-sized enterprises (SMEs), including investments in energy-efficient and “green” technologies.
The EBRD program will cover up to 50% of OTP BANK credit risk on new loans, with a maximum total equivalent to €200 million for private enterprises operating in Ukraine. This mechanism will simplify access to financing for Ukrainian businesses and allow partial reimbursement of expenses incurred for implementing energy-efficient and “green” projects that meet EU standards.
Additionally, borrowers from vulnerable categories—including women entrepreneurs, veteran-owned businesses (or those providing employment or services to veterans), youth entrepreneurs, relocated businesses, and those affected by war damage—will be eligible for higher levels of investment compensation.
“This program is a successful extension of OTP Bank’s existing cooperation with the EBRD, which is in high demand among our clients. It is now focused not only on financing critical sectors of the economy but also on supporting the most vulnerable categories of businesses, such as veteran-owned and relocated enterprises. Thanks to this tool, companies will be able to expand their activities and receive additional compensation within the framework of international programs,” – said deputy head of corporate finance directorate Andrii Zakrenychnyi.
These investment compensations are financed by the European Union under the EU4Business initiative. The compensation amount depends on the type of assets acquired, project complexity, and the borrower’s category, ranging from 10% to 30% of the loan amount received. Reimbursements are made in euros upon documentary confirmation of targeted use and verification by EBRD consultants. The EBRD facility will be supported by first loss risk cover funded by donors, including the European Union under Ukraine Investment Framework (UIF).
The EBRD has made more than €5.4 billion available to the country since Russia invaded in 2022, of which more than €1.6 billion this year. It invests to support energy security, vital infrastructure, food security, trade and the private sector.
OTP BANK in Ukraine is a 100% owned subsidiary of OTP Bank Plc., Hungary. OTP BANK JSC is a universal bank offering conventional banking products to MSME, corporate and retail clients, and ranked eleventh in Ukraine in terms of total assets as of end-November 2024.
The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 36 economies across three continents. The Bank is owned by 73 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well governed, green, resilient and integrated. Follow us on the web, Facebook, LinkedIn, Instagram, X and YouTube.
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Public Joint Stock Company OTP Bank is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard.
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