Food Security Guarantee ("FSG", the "Facility") in the form of an unfunded risk-sharing instrument covering 50 per cent of the credit risk in newly originated sub-leases with the total value of EUR 19.5 million equivalent to be originated by OTPL.
The Facility will support food security in Ukraine by enhancing OTPL's capacity to provide much needed access to finance for Ukrainian private companies operating in critical agri-related industries (farming, food and agri produce processing, transportation and imports), with the ultimate goal of preserving livelihoods in the country.
ETI score: 70
The Facility will support the Resilient and Inclusive TI qualities. The Resilient quality stems from credit enhancement mechanism provided by the FSG, which enables OTPL to finance Ukrainian agricultural value chains to preserve food security, while shielding their loan portfolio for excessive risk prevailing in the current volatile conditions. The Facility will also support the Inclusive quality by providing funding to the Ukrainian businesses directly affected by the conflict, aimed at safeguarding their human and organisational capital.
OTP LEASING LLC
LLC OTP Leasing ("OTPL") is the leading leasing company in Ukraine with about 39% market share in terms of leasing portfolio (USD 505 million) as of the end of 2021, stable financial position, proven track record and a viable business model. It focuses on corporate clients with positive credit history, international ownership, leading market positions and balanced funding structures. OTPL provides financial leases and fleet management services to corporate and MSME clients across the country. OTP Bank Plc., Hungary ("OTPH"), ultimately owns OTPL.
EBRD Finance Summary
Total Project Cost
Response to the war in Ukraine: the Facility is provided in the extraordinary circumstances of the ongoing war on Ukraine, serving as a significant risk-mitigating instrument to enable financing of critical agri-related industries.
Environmental and Social Summary
Categorised FI (ESP 2019). OTPL is an existing client of EBRD and performance on environmental and social (E&S) issues to date has been satisfactory. Annual reporting and previous E&S due diligence demonstrated that the bank has a written Environmental Management Policy, staff nominated to manage E&S issues, adequate E&S risk management procedures built into the credit appraisal process and appropriate monitoring for E&S issues both within the portfolio and the institution. The management system is applied to the entire commercial lending portfolio. OTPL has also provided information to confirm compliance with PRs 2 and 4. OTPL should note requirements of the revised EBRD E&S Policy notably in relation to the updated E&S Exclusion List, the E&S Referral List and the requirement to apply PRs 1 through 8 and 10 to any Category A projects considered. OTPL should continue its compliance with PRs 2, 4 and 9 and the submission of annual E&S reporting to the EBRD (to the extent possible).
Technical Cooperation and Grant Financing
Non-TC: Non-TC funds for the FLRC are provided to EBRD by Financial Intermediary and Private Enterprises Special Fund under a specific window for the EBRD's War on Ukraine Response Package.
Company Contact Information
Kyiv region, Petropavlivska Borshchahivka village, Ozerna str., 5, 08130
PSD last updated
29 Apr 2022
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