The European Bank for Reconstruction and Development (EBRD) has agreed to provide $50 million in guarantees to UkrSibBank (Kyiv) for lending to its corporate clients, UkrSibBank has informed on its website, Interfax-Ukraine reports.
According to the report, the agreement concluded on 22 December 2017 will support lending to Ukrainian corporations. According to the agreement, the risk sharing total amount should not exceed 40% of the total lending volume or $50 million.
The Risk Sharing Facility signed with the EBRD would allow to raise funding for Ukrainian enterprises, especially in the agricultural sector.
“The EBRD and UkrSibBank will now cooperate under the Risk Sharing Facility, which is good news for many local enterprises, particularly in the agricultural industry. This project will stimulate lending to the real sector of the economy and contribute to the development of financial services in Ukraine,” EBRD Director for Ukraine Sevki Acuner clarified.
UkrSibBank was established in 1990. As of the beginning of January 2017, 59.9996% of the institution’s charter capital is owned by BNP Paribas S.A. (France), while another 40% are held by the European Bank for Reconstruction and Development.
As of 1 October 2017, UkrSibBank ranked 7th among 88 operating banks in terms of total assets worth $1.5 billion, according to the National Bank of Ukraine.