Raiffeisen Bank Aval and EBRD disburse the first loan under Risk Sharing Facility programme
Kyiv. 21 November. —
- Up to US$8.5 million from Raiffeisen Bank Aval supported by EBRD’s Risk Sharing Facility
- Funds to be used for acquisition of grain hoppers and new trucks
- Improved efficiency and decreased reliance on third-party railway service providers
Raiffeisen Bank Aval and EBRD are underlining its commitment to Ukraine’s agribusiness sector by extending a joint Risk Sharing Facility to Krolevets Feed Factory (KFF), a group engaged in crop farming, silo services and grain trading.
The facility will have a volume of up to US$8.5 million which will be shared between the two financial institutions.
Under the Risk Sharing Facility programme, the EBRD will share the risk on individual loans made by Raiffeisen Bank Aval to businesses in the total amount of up to €20 million over a period of three years. The RSF will help increase the size and tenor of loans to businesses across the country.
“We are proud that our bank was one of the first in Ukraine to start cooperation with the EBRD in the direction of Risk Sharing, and it was the Raiffeisen Bank Aval’s client who received funding with the support of European partners. It is not just about getting money, it is an opportunity for businesses to move to a much higher level of corporate finance and partnerships with international financial institutions. The first step is done. We are currently planning to expand our cooperation in this area and look forward to signing new agreements in the near future,” said Olena Mykhailychenko, Corporate Business Manager at Raiffeisen Bank Aval.
KFF will invest the funds in the acquisition of more than 100 grain hoppers, 13 new trucks with trailers and a mulcher to improve operational efficiency and diversify its logistics operations. The funding will also facilitate the upgrade of the existing fleet of vehicles used for crop transportation.
The EBRD is the largest international financial investor in Ukraine. Since the start of its operations in the country in 1993, the bank has made a cumulative commitment of almost €14.5 billion through 450 projects in the country.
The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 38 economies across three continents. The Bank is owned by 66 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, resilient and integrated.
Raiffeisen Bank Aval was founded in 1992. Since October 2005, it has been part of the Austrian banking group Raiffeisen Bank International AG. Raiffeisen Bank Aval offers a wide range of services to more than 2.5 million clients through its nationwide network.