KredoBank Secures a $40 Million Loan Portfolio Guarantee from the United States International Development Finance Corporation

On October 24, 2024, KredoBank signed an agreement to secure a $40 million loan portfolio guarantee for Ukrainian enterprises from the United States International Development Finance Corporation (DFC). The signing took place in Washington, D.C., during the annual meetings of the International Monetary Fund and the World Bank Group.

The loan portfolio guarantee will be used to guarantee KredoBank’s expanded loan financing for small and medium-sized businesses in Ukraine. Loans for working capital, investment loans, and financial leasing under the DFC guarantee will be available to enterprises operating in all controlled territories of Ukraine with no more than 300 employees and no more than $15 million in annual revenue. 

The maximum loan amount for a client is $1.5 million equivalent.  The guarantee will enable KredoBank to issue business loans totaling $50 million. At least 25% of the value of the loan portfolio backed by the DFC guarantee will be targeted toward small and medium-sized agricultural enterprises. The transaction was made possible with the support of the United States Agency for International Development (USAID).

“We are delighted to support Ukraine’s private sector, especially entrepreneurs and agricultural businesses, through the transaction that we are announcing with KredoBank today. DFC remains committed to supporting Ukraine’s economic recovery, now and into the future.” - said DFC CEO Scott Nathan.

“The guarantees of the US Development Corporation will allow KredoBank to significantly increase financing of Ukrainian business in the frontline areas and support even more companies operating in Ukraine.  Thanks to the risk-sharing programs that have been operating in the bank for more than two years, we have managed to provide Ukrainian entrepreneurs with a total of more than EUR 155 million in loan financing. And this is not just a number - it means saved jobs, paid taxes and a working Ukrainian economy. Every day, Ukrainians pay a high price just to live and work on their land. I am grateful to DFC and all international partners for their trust and for the guarantee programs that help Ukrainian business survive the war”, - says Jakub Karnowski, First Deputy Chairman of the Management Board of JSC KredoBank.

About DFC:

The U.S. International Development Finance Corporation (DFC) is America's development finance institution. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors, including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.