KredoBank and the EBRD signed an agreement on extension of the guarantee program for business lending for EUR 100 million

On September 11, 2024, Ukraine's KredoBank, which is part of the PKO Bank Polski Group, signed a new risk-sharing agreement with the European Bank for Reconstruction and Development for business lending for a total amount of EUR 100 million.

Under the agreement signed by both parties in London, the EBRD is providing an unfunded risk-sharing instrument that covers 50% of the credit risk from KredoBank's new financing for a total of EUR 100 million.

The EBRD guarantee is provided in two equal tranches. Under the current program, at least 30% of all loans covered by the EBRD should be received by agricultural enterprises.

In addition, around EUR 20 million of the total portfolio of EUR 100 million covered by the guarantee will be available to finance long-term investments by micro, small and medium-sized enterprises (MSMEs) in technologies and equipment that meet EU standards, including investments in sustainable and “green” technologies under the EU Eastern Partnership Competitiveness and Inclusiveness Programme (EaP SMECI). Accordingly, upon completion of investment projects, borrowers will be able to receive grant support in the form of investment incentives.

"The resilience of the Ukrainian economy directly depends on the performance of Ukrainian businesses, which are currently operating in extraordinary conditions and need additional funding. Due to our cooperation with the EBRD, which has lasted for more than two years, KredoBank has issued more than EUR 130 million in loans to Ukrainian businesses, thus providing access to financing for Ukrainian companies operating in critically important industries. As of September 1 this year, KredoBank's loan portfolio exceeded UAH 14.5 billion," 
- says Jakub Karnowski, First Vice Chairman of the Management Board of JSC Kredobank.

Half of the loans out of the total quota of more than EUR 130 million, which were issued by KredoBank within the framework of cooperation with the EBRD, were received by manufacturing enterprises, including agricultural enterprises. 

A third of borrowers are trade enterprises, and the rest are other industries (logistics, construction, services, etc.). The main share of financing is aimed at supporting current activities, and 22% of this is made up of long-term investment loans and leasing. More than EUR 22 million of loans were received by new customers who had not previously used the services of KredoBank. More than 50% of borrowers are enterprises operating in areas with an increased risk of damage and destruction as a result of hostilities, the so-called "yellow" and "orange" zones.