A 4-year amortising senior unsecured loan of up to €15 million equivalent to be provided to LLC "OTP Leasing" for on-lending to eligible MSMEs under the DCFTA Programme (known as EU4BUSINESS EBRD Credit Line - Finance and Advisory Programme Supporting SME). The loan will be available for disbursement as a synthetic UAH and/or €-denominated facility.
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.
ETI score: 80
Competitive: OTPL will expand its MSME lease portfolio with a focus on financing DCFTA priority investments complying with EU directive(s), ultimately facilitating competitiveness of Ukrainian MSMEs;
Resilient: OTPL will be expected to maintain adequate lease portfolio quality.
OTP LEASING LLC
The leading leasing company in Ukraine with a leasing portfolio of over US$ 330 million equivalent (as of year end 2019). Through the HQ in Kyiv and seven regional offices in in Kharkiv, Odessa, Ternopil, Dnipro, Mykolaiv, Zaporizhia and Vinnytsia, OTPL provides financial leases and fleet management services to corporate clients across the country. 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 (the Programme technical assistance supporting timely realisation of DCFTA eligible investments in Ukraine).
Environmental and Social Summary
Categorised FI (ESP 2019). OTPL is the Bank's existing client with an Environmental Social Monitoring System ("ESMS") covering environmental and social risk management in line with EBRD Performance Requirement ("PR") 9. For this transaction, OTPL will be required to continue complying with EBRD's PRs 2, 4 and 9, implement the EBRD's E&S Risk Management Procedures for Leasing Companies which includes adherence to the EBRD's Environmental and Social Exclusion List and submission of Annual E&S Reports to the Bank. OTPL's borrowers will be required to comply with applicable national environmental, health and safety, and labour requirements. The expected Green Economy Transition ("GET") component for this transaction is 60 per cent.
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 OTPL will receive technical assistance from the Programme dedicated consultants towards investment projects preparation and implementation.
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
11 Mar 2020
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