OTP BANK Joins New Agri-Sector Financing Model via Agricultural Notes
JSC «OTP BANK» has joined the implementation of a transaction utilizing an agricultural note - a modern digital financing tool for agricultural producers. The Bank acted as the depository institution and facilitated the transaction, under which the supplier, DARTIL LLC, provided biological fertilizers and organic products on credit to AGRO SUPROVID LLC from the Zhytomyr region. To secure its obligations under the supply agreement, AGRO SUPROVID LLC issued a financial agricultural note, with the unconditional financial obligation totaling UAH 4.8 million.
For OTP BANK participation in such projects is part of developing a modern agricultural financing infrastructure and supporting new digital tools for Ukrainian farmers. Indeed, the use of such notes is a relatively new fundraising instrument, governed by a law that came into force in January 2025.
«We see significant potential in agricultural notes as a modern digital tool for the agricultural sector. For OTP BANK participation in such projects is an opportunity to support clients through new financing mechanisms and contribute to the development of a modern financial infrastructure for Ukraine's agricultural market. We plan to continue developing our practice with agricultural notes and expanding opportunities for our clients», shared Ivan Yerko, Head of the «Agro Fabrika» Department at OTP BANK.
Agricultural notes open up new financing opportunities for agricultural producers and make access to resources more flexible, structured, and transparent for all market participants. For agricultural producers, using an agricultural note means the ability to obtain the necessary resources for the production cycle today, while fulfilling financial obligations after the future harvest is sold. For suppliers, it offers a more structured and secure format for deferred payments.
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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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