The EBRD has provided OTP Bank with partial guarantees for new loans totaling €200 million.

The European Bank for Reconstruction and Development (EBRD) has signed an agreement with Ukraine's OTP Bank, approved in early December, to cover up to 50% of the credit risk for new loans from the bank amounting to €200 million.

This is mentioned in an announcement from the EBRD.

“This is the fifth and largest credit agreement provided by the EBRD to OTP, reflecting the successful cooperation between the two institutions to date,” the release emphasizes.

The EBRD's participation in the project, valued at €60 million, will be supported by first-loss risk coverage financed by donors, including the European Union, under the Ukraine Investment Framework (UIF Ukraine Facility).

It is also noted that with this project, the total volume of financing under similar guarantees from the EBRD, signed since the beginning of Russia's full-scale war against Ukraine, amounts to nearly €2 billion.

Up to 20% of the loans with risk-sharing under the project will be directed towards supporting long-term investments by private micro, small, and medium-sized enterprises (MSMEs) in line with EU requirements and “green” technologies, enhancing their competitiveness in both domestic and international markets. Upon completion of the investment projects, such sub-borrowers will receive investment grants funded by the EU under the EU4Business initiative, as well as technical assistance. The EBRD has already allocated €66 million in grant support for Ukrainian MSMEs under the EBRD – EU4Business credit line, including €5 million for projects through OTP.

According to information on the bank's website, guarantees are planned to be provided in three tranches: two tranches of €22.5 million each, covering €75 million, and one tranche of €15 million, covering €50 million of the credit portfolio.

According to data from the National Bank of Ukraine (NBU), as of November 1, 2024, OTP Bank, a 100% subsidiary of Hungary's OTP Bank, ranked 11th (UAH 116.9 billion) in total assets among 62 banks in the country. The net profit of the financial institution for the 10 months of the previous year amounted to UAH 4.82 billion.

Since the Russian invasion in 2022, the EBRD has provided over €5.4 billion to Ukraine, including more than €1.6 billion last year, according to the announcement.

Background. Earlier, Mind reported that the European Bank for Reconstruction and Development (EBRD) is providing “Ukrzaliznytsia” with a €300 million loan for updating its locomotive fleet – the purchase of new electric locomotives. This information was disseminated by the bank's press service.