15 Nov 2023 12:36

EBRD may cover up to 50% of Ukrainian Credit Agricole Bank's new loans for 50 mln euros

MOCOW. Nov 15 (Interfax) - The European Bank for Reconstruction and Development (EBRD) may cover up to 50% of the credit risk in newly originated sub-loans for Ukraine's Credit Agricole Bank with the total value of 50 million euro equivalent (the Covered Portfolio).

Thee EBRD guarantee will amount to 12.5 million euros and will be provided in two tranches, Ukrainian media said, citing an EBRD statement.

The project will support lending to Ukrainian private companies operating in the primary and secondary agriculture and other critical industries including food processing, retail and logistics, the EBRD said on its website.

The project also includes a sub-limit of 7.5 million euros or 15% of the Covered Portfolio to finance long-term capital investments of micro-, small-, and medium-sized enterprises to upgrade their technologies and equipment to EU standards, including investments in sustainable and green technologies - 70% of the sub-limit.

"Eligible sub-borrowers will also receive technical assistance funded by the EU and grant support in the form of investment incentives upon the completion of their eligible investment projects," the EBRD said.

According to data from the National Bank of Ukraine as of September 1, 2023, Credit Agricole Bank ranked 11th by total assets (101.15 billion hryvni) among 64 banks operating in Ukraine and has 141 branches. The bank is fully owned by France's Credit Agricole SA.