A four-year amortising senior unsecured loan of up to €25 million equivalent to be provided to LLC "OTP Leasing" for on-lending to eligible MSMEs under SME Competitiveness Programme in Eastern Partnership. The loan will be available for disbursement as a synthetic UAH and/or euro-denominated facility. In addition to long-term financing, eligible sub-borrowers will receive technical assistance funded by the European Union and grant support in the form of investment incentives upon the completion of their investment projects.
The project will enable the company to finance long-term investments of Ukrainian MSMEs in upgrading their technology and equipment necessary to meet EU standards in terms of product quality, health and safety measures and environmental preservation. At least 80 per cent of all financed sub-leases are expected to be compliant with EBRD Green Economy Transition (GET) approach.
ETI score: 75
Competitive: the company will expand its MSME lease portfolio with a focus on financing priority investments complying with EU directive(s), ultimately facilitating competitiveness of Ukrainian MSMEs;
Resilient: the company is expected to maintain adequate lease portfolio quality.
ETI score: 75
OTP LEASING LLC
The leading leasing company in Ukraine with a leasing portfolio of over US$ 367 million equivalent (as of year end 1H2020). OTP Leasing provides financial leases and fleet management services to corporate clients across the country, through a network of offices including the Kyiv HQ and seven regional offices in Kharkiv, Odessa, Ternopil, Dnipro, Mykolaiv, Zaporizhia and Vinnytsia. The Company is ultimately owned by OTP Bank Plc (Hungary).
EBRD Finance Summary
Total Project Cost
Key sources of additionality under the project are (i) Financing structure (long term tenor supporting longer investments, including in the local currency) and (ii) Knowledge, innovation and capacity building (technical assistance under the programme will support timely realisation of EU-compliant investments in Ukraine).
Environmental and Social Summary
Categorised FI (ESP 2019). OTP Leasing is an existing client of the EBRD and performance on environmental and social issues has been satisfactory to date, as evidenced by annual reporting provided to the Bank. The company operates an Environmental Social Management System ("ESMS") covering environmental and social risk management in line with EBRD Performance Requirements (PR) 2, 4 and 9. For this project, OTP Leasing will be required to continue complying with the applicable PRs, implement the EBRD's Environmental & Social (E&S) Risk Management Procedures for Leasing Companies including adherence to the EBRD's Environmental and Social Exclusion List and the requirement for sub-borrowers to comply with applicable national environmental, health and safety, and labour requirements. OTP Leasing will continue to provide annual environmental and social reports to the Bank to demonstrate on-going compliance with EBRD requirements.
Technical Cooperation and Grant Financing
MSME sub-borrowers will benefit from financial incentives (10 per cent of the lower of sub-lease disbursed amount or investment cost) for eligible sub-projects, while OTP Leasing will receive technical assistance from dedicated consultants towards investment projects preparation and implementation.
This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.
Company Contact Information
Andriy Pavlushyn, CEO
+380 (44) 500 1000
+380 44 594 7060
Ozerna St, 5, Petropavlivska Borshchahivka, Kyiv Oblast, 08129
PSD last updated
12 Nov 2020
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
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