Raiffeisen Bank and EBRD agreed in Berlin to support the Ukrainian business for EUR100 mn

Raiffeisen Bank (Ukraine) and the European Bank for Reconstruction and Development (EBRD) signed an agreement on the new risk sharing program covering the lending to the Ukrainian businesses for EUR 100 mn. The agreement was signed at the Ukraine Recovery Conference in Berlin on June 12, 2024.

Based on the agreement, EBRD will provide Raiffeisen Bank EUR 50 mn risk sharing guarantee to cover the new loans to the Ukrainian businesses for the total of EUR 100 mn (in the equivalent).

The agreement is being implemented as part of the EBRD's Resilience and Livelihoods Framework — an initiative intended to facilitate access to financing for private corporate business in Ukraine, and the EBRD's SME Competitiveness and Inclusion in Eastern Partnership Program for Small and Medium-Sized Businesses (EaP SMECI) with the support and funding by the European Union. It aims to support sustainable investments in technologies that meet the best practices in terms of product quality, healthcare and occupational safety, environmental protection, and contribute to «green» technologies use, thus enhancing the competitive edge of micro, small and medium enterprises, including veterans' relocated and damaged by war businesses.

This is the second portfolio-based risk sharing agreement between Raiffeisen Bank and EBRD since February 2022. Thus, the risk amount that EBRD is ready to take has grown to over than EUR 230 mn over the last two years.

«We welcome the new phase of cooperation with Raiffeisen Bank, which always supports the Ukrainian business. The financing under the agreement will be focused on lending to the Ukrainian business in agro, food industry, retail and logistics, provided that the income from such business stays in Ukraine. 20% of the financing with investment incentive component provided by Raiffeisen Bank will be targeted at the support of long-term loans for micro, small and medium enterprises in order to upgrade the technologies and equipment according to the EU standards, including the investments in «green» technologies for which 70% of the financing is allocated, and increasing their competitive edge», commented the EBRD's Vice President, Banking, Matteo Patrone.

«We are grateful to our shareholder EDRD for supporting Ukraine and the Ukrainian business. From now on the Ukrainian companies will have better access to available financing, with a chance to return up to 30% of the loan amount under certain conditions through stimulus grants. As part of cooperation with EBRD, Raiffeisen Bank provided the clients with up to UAH 6 bn funding in 2022-2024, which enabled creating new jobs, increasing exports, implementing socially relevant infrastructural projects and «green» technologies for food and energy resources production», said Oleksandr Pysaruk, the Chairman of Raiffeisen Bank's Management Board.