- EBRD and Citi Ukraine agree a US$ 100 million revolving credit facility available in Ukrainian hryvnia
- Facility will help the EBRD extend further local-currency loans to new and existing clients
- Financing is part of the EBRD and Citi’s commitment to supporting Ukraine in wartime
The European Bank for Reconstruction and Development (EBRD) and Citi Ukraine have signed a US$ 100 million revolving credit facility in Ukrainian hryvnia to increase the availability of the national currency to local businesses affected by the war. This is the largest facility of its kind in hryvnia signed to date between the two institutions.
The facility enables the EBRD to secure access to hryvnia liquidity and provide local-currency loans both directly and through domestic financial intermediaries to existing and potential clients in Ukraine. The funds will be used to support their liquidity, short-term working capital and trade-finance needs, while limiting currency exchange-related risks.
Over the past 10 years the EBRD has been working increasingly with domestic stakeholders in its regions to improve the Bank’s access to local currency and support the development of domestic financial markets. The new facility in hryvnia is a welcome addition to the EBRD’s local-currency toolkit in Ukraine.
Matteo Patrone, EBRD Managing Director for Eastern Europe and the Caucasus, said: “We are pleased to continue our strong cooperation with Citi Ukraine. The EBRD has deployed €3.8 billion in wartime Ukraine since the start of Russia’s full-scale invasion, and we expect to maintain similar investment levels going forward. This new facility will help ensure we can continue to meet the local-currency financing needs of Ukraine’s private-sector businesses within these levels. This is particularly essential during this time of economic uncertainty.”
This particular collaboration between the EBRD and Citi Ukraine marks Citi’s inaugural transaction of its Local Currency Financing Solutions initiative for development finance institutions. Through this initiative, Citi aims to facilitate capital mobilisation in local currencies to deliver financial stability by reducing risk, aligning with responsible banking practices and empowering local borrowers to navigate their financial obligations with greater confidence.
Alexander McWhorter, Citi Ukraine’s Citi Country Officer, commented on this milestone: “Since the war broke out, at Citi we’ve been working towards supporting Ukraine’s community and economy. The collaboration with the EBRD is one more step towards providing more capital and financial solutions for stakeholders involved in Ukraine’s reconstruction.”
The EBRD and Citi are fully committed to supporting Ukraine, to help provide significant and sustained investment in its real economy, strengthening the country’s resilience in the face of Russia’s war on Ukraine.
Over the last 30 years, the EBRD has been the largest institutional investor in the country, with cumulative investment of more than €18 billion in over 500 projects. Since the start of Russia’s war on Ukraine, the Bank has deployed a record €3.8 billion in Ukraine’s real economy.
Citi Ukraine (JSC Citibank) is a 100 per cent-owned subsidiary of Citibank N.A. It has had a presence in Ukraine for more than 25 years, serving around 500 multinational firms and large Ukrainian corporations, as well as some public-sector and mid-sized clients.