EBRD supports private sector in Ukraine with loan to OTP Leasing

The European Bank for Reconstruction and Development (EBRD) has extended a local currency loan of up to €20 million to Ukraine’s OTP Leasing to support businesses affected by Russia’s invasion of the country, the bank announced on 7 January.

The financing will help to strengthen the competitiveness, resilience and inclusiveness of Ukrainian micro, small and medium-sized enterprises (MSMEs) by expanding access to leasing products at a time of tight liquidity and heightened economic uncertainty.

Fifty per cent of the EBRD’s loan proceeds will be provided to MSMEs for long-term investments in EU-compliant and green technologies.

The loan will enable OTP Leasing to meet strong local demand for leasing services, allowing MSMEs to acquire vehicles, equipment and machinery without large upfront capital outlays at a time when liquidity remains constrained due to war-related disruptions.

On completion of their investment projects, eligible sub-borrowers will also receive technical assistance funded by the EU, and investment incentives funded by the United States of America, under the EU4Business initiative.

Greater incentives will be provided to support war-affected and vulnerable groups, including MSMEs that have suffered asset loss or destruction, businesses reintegrating war veterans, internally displaced persons and returnees, persons with disabilities and MSMEs relocated from or operating in war-affected regions. Women-led and youth-led enterprises will also benefit.

OTP Leasing is an existing EBRD client and the leading leasing company in Ukraine, providing financial leases and fleet management services to corporate and MSME clients across the country. It is a fully owned subsidiary of OTP Bank, a leading regional financial group headquartered in Hungary.

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Press release