EBRD guarantee to Ukraine’s JSC OTP Bank to enable €120 million of lending to private sector

• EBRD provides unfunded portfolio risk-sharing facility to JSC OTP Bank 

• Facility will unlock €120 million of new financing for Ukraine’s private sector 

• Focus on agribusiness and critical industries, with EU support for competitiveness upgrades 

The European Bank for Reconstruction and Development (EBRD) is extending an unfunded portfolio risk-sharing facility to Ukraine’s JSC OTP Bank (OTPU), to unlock €120 million of new financing for Ukraine’s private sector amidst the ongoing war waged by Russia.  

The EBRD facility will be supported by first loss risk cover funded by the US via the EBRD Crisis Response Special Fund (CRSF) - (USA, France, Canada, Italy, Japan, Norway, Switzerland, the United Kingdom, Germany, Netherlands, Denmark) - as part of the Bank’s resilience package arrangements. 

Up to 15 per cent of the risk-shared loans will support private MSMEs’ long-term investments in EU compliant and green technologies, improving their competitiveness on domestic and foreign markets. Upon completion of their investment projects, eligible sub-borrowers will receive investment incentives financed by the European Union under its EU4Business initiative, as well as technical assistance. 

JSC OTP Bank in Ukraine is a 100 per cent owned subsidiary of OTP Bank Plc., Hungary. OTPU is a universal bank offering conventional banking products to MSME, corporate and retail clients, and ranked ninth in Ukraine in terms of total assets as of end-October 2023.  

The EBRD has deployed more than €4.1 billion in Ukraine since the start of the full-scale war. In addition to supporting the private sector, its strategic priorities in the country are to support energy, food safety and critical infrastructure.