EBRD to partially cover ProCredit Bank's risks on new loans worth EUR70 mln

The European Bank for Reconstruction and Development (EBRD) will support, through a risk-sharing mechanism, the provision of new loans worth EUR70 million by ProCredit Bank (PCBU, Kyiv) to small and medium-sized businesses in Ukraine in key sectors of the economy, in particular in agriculture, the food industry, retail trade and logistics.

"This is the fifth portfolio risk-sharing facility that the EBRD has provided to PCBU since the start of Russia’s full-scale invasion, building on the success of previous instruments," the bank said.

"Up to 20% of all sub loans covered by the EBRD’s guarantee will support the financing of long-term capital investments by micro, small and medium-sized enterprises (MSMEs), helping them to upgrade their technology and equipment in line with European Union (EU) standards under the EU4Business-EBRD Credit Line. Eligible sub borrowers will also benefit from EU-funded technical assistance and grant support," it said.

"Additional investment incentives will be available to borrowers whose assets have been destroyed, lost or relocated due to the war, as well as those that are actively involved in reintegrating veterans into the workforce. The EBRD facility will be backed by first-loss risk cover funded by the European Union under its Ukraine Investment Framework," it added.

The EBRD recalls that ProCredit Bank is a 100% subsidiary of ProCredit Holding AG and a leading SME lender in Ukraine. With EUR1.03 billion in total assets as of 2024, the bank was among the 15 largest out of 61 banks operating in Ukraine, with a market share of approximately 1.2%.