EBRD provides USD 20mln line of credit for OTP Leasing

EBRD provides USD 20mln line of credit for OTP Leasing

EBRD issued the loan in domestic currency worth UAH 514mln

OTP Leasing will channel the raised funds into increasing volumes of financial leasing nominated in local currency for small and medium-sized enterprises (SMEs) throughout the country. Lending in national currency is beneficial for potential borrowers eliminating currency exchange risks.

OTP Leasing, the beneficial owner of which is OTP Bank Plc (Hungary), has been a leading player in the leasing market for almost ten years. The loan from the EBRD will be a key for the implementation of the development strategy of OTP Leasing aimed at diversifying the client base targeting small agricultural producers with a land bank of 5 000ha.

“Ukraine’s leasing market has contracted severely in recent years and at the moment it represents less than 1 per cent of GDP, compared with up to 14 per cent of GDP in neighbouring countries such as the Czech Republic, Hungary or Poland. Therefore the loan agreement with OTP Leasing is very important, not only financially but also in terms of market confidence and development. The project promotes local currency lending in Ukraine, which should strengthen, in particular, the market position and competitiveness of domestic small and medium-sized companies.”, told Sevki Acuner, EBRD Director for Ukraine.

“The financial programs of the EBRD fully conform to our strategies. OTP Leasing has been actively implementing the Auto-Factory and Agro-Factory projects, wherein we provide small and medium-sized enterprises with financing for up to UAH 2 million. We are encouraged by the recent brisk activation of small and medium businesses with a growing demand and extending terms of transactions. Using the EBRD financing and our partner programs with suppliers, we can offer final customers to lease machinery and vehicles under special conditions for 12-13% in UAH for 3 years,” according to Andrii Pavlushyn, OTP Leasing CEO.

"We have repeatedly emphasized that OTP Bank is focused on the needs of SMEs. We have developed a whole range of products and services: from special overdraft and tariff packages to an integrated loan project called OTP Agro-Factory. And now, we are talking about a vivid embodiment of our strategy, that is fresh investments in the development of Ukrainian SMEs totaling UAH 1 billion," said Tamas Hak-Kovacs, Chairman of the Board of OTP Bank PJSC.

The EBRD is the largest financial investor in Ukraine. As of present, it has made a cumulative commitment of almost EUR 12.2bn through 377 projects since the start of its operations in the country in 1993.

OTP Leasing LLC is a universal leasing company that is part of the European financial group OTP Group. OTP Leasing was founded in June 2008 as a subsidiary of OTP Bank PJSC. OTP Leasing operates in all segments of the market with leading manufacturers of machinery, special equipment and vehicles, providing leasing services.

Public Joint Stock Company OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. In Ukraine, OTP Bank PJSC is captaining a financial group including OTP Capital Asset Management Company and OTP Leasing LLC.

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