EBRD provided UAH 324 mln loan to OTP Leasing

The EBRD is providing a local currency loan of up to UAH 324 million (EUR 10 million equivalent) to OTP Leasing (OTPL) in Ukraine for long-term leases to small and medium-sized enterprises (SMEs) across the country.

SMEs will also benefit from grant funding of up to EUR 1 million available under the European Union’s EU4Business initiative, which helps small firms to invest and benefit from the Deep and Comprehensive Free Trade Area (DCFTA) between Ukraine and the EU.

By joining the EBRD programme, which is linked to the DCFTA, OTPL and its clients will also benefit from expert advice in the form of training and support provided by consultants.

The EBRD loan will allow OTPL to increase the terms of leases it offers and provide them in local currency. This will enable the leasing provider to diversify its customer base, especially by targeting smaller companies. The use of local currency will shield local borrowers from foreign exchange risks.

Reference: OTP Leasing and Arcelor Mittal signed a leasing agreement to supply 450 open wagons produced by the Ukrainian plant Dniprovagonmash with a total value of about UAH 600 million.