EBRD to provide guarantee to Ukreximbank for new loans of EUR100 mln
The European Bank for Reconstruction and Development (EBRD) will provide a risk-sharing guarantee without prior financing to the state-owned Ukreximbank in order to expand financing and provide new loans to Ukrainian businesses in the amount of EUR100 million.
As stated on the EBRD website, whose board of directors approved the relevant project on September 9, it will cover up to 50% of the credit risk.
According to the published information, the guarantee will be provided in two equal tranches, with the second tranche still uncommitted.
It is noted that up to EUR20 million of risk-sharing sub-loans will be directed to financing long-term investments of SMEs under the EU4Business-EBRD credit line with incentives, which will allow financing long-term capital investments of SMEs to upgrade their technologies and equipment to EU standards, including investments in steel and green technologies (at least 70% of the sub-limit).
Eligible sub-borrowers will also receive EU-funded technical assistance and grant support in the form of investment incentives upon completion of their investment projects.
Ukreximbank is the third largest bank in Ukraine by total assets as of the middle of this year - UAH 318.6 billion (8.3% of the total assets of the system).