In a move aimed at bolstering economic development in Ukraine, the European Bank for Reconstruction and Development (EBRD) has extended a guarantee to OTP Leasing to facilitate financing for small and medium-sized enterprises (SMEs) in the country, according to Ukraine Business News.

The guarantee, covering 50% of OTP Leasing’s new subleasing contracts valued at up to €80 million, marks a significant step towards providing much-needed financial support to Ukrainian businesses. The financing will be disbursed in two tranches of €40 million each, with the first tranche already confirmed.

This initiative is designed to support Ukrainian enterprises operating in vital sectors such as primary and secondary agriculture, food industry, retail trade, and logistics. By facilitating access to financing, the project aims to stimulate growth and innovation within these key industries.

Of the total sub-limit, 70% will be dedicated to financing long-term capital investments for modernising technologies and equipment to meet EU standards. This includes investments in green technologies, aligning with global sustainability objectives.

Furthermore, sub-borrowers will have the opportunity to benefit from EU-funded technical assistance and grant support upon completion of their investment projects, providing an additional incentive for businesses to pursue sustainable growth strategies.

OTP Leasing, a Ukrainian company established in 2008 and part of the European financial OTP Group, plays a role in facilitating leasing solutions for businesses across various sectors. With a leasing portfolio amounting to $268 million by 2023, representing approximately 41% of the market share, OTP Leasing has established itself as a key player in supporting the growth and development of the Ukrainian economy.

OTP Leasing, founded in 2006, emerged as a subsidiary of the Hungarian Merkantil Bank, operating as a prominent entity within the OTP Group, the largest commercial bank in Hungary.