UkrSybbank : UKRSIBBANK plans to increase the financing of agriculture sector clients

01/17/2018

$ 50 M - this amount will be provided by EBRD as a guarantee for UKRSIBBANK's clients corporate lending. The agreement (signed on December 22, 2017) will support business lending in Ukraine.

'UKRSIBBANK is the first bank in Ukrainian market that has such guarantees which allow increasing of Ukrainian companies financing primarily involved to the agriculture industry.

As of today, UKRSIBBANK is one of the leading banks in agriculture sector financing in Ukraine.

The Bank believes in the high potential of the sector which currently generates 12% of GDP and 40% of total export from Ukraine, as a result, to support a development of agriculture industry in Ukraine a dedicated Agri Desk with specialized financing solutions for agricultural clients has been created 5 years ago in UKRSIBBANK' - said UKRSIBBANK BNP Paribas Group Deputy Chairman of the Management Board - Head of Corporate Department Hans Broucke.

The risk-sharing agreement with EBRD will be a next step to strengthen the position of the Bank in this sector and increase a volume of the financing to the industry.

Sevki Acuner, EBRD Director for Ukraine, said: 'The EBRD and UkrSibbank will now cooperate under the Risk Sharing Facility and this is good news for many local corporates, especially in the agribusiness sector. This project will stimulate real sector lending and contribute to the development of financial services in the country.'

According to this agreement, the risk sharing total amount shouldn't be more that 40% of the total lending amount or $ 50M.

Furthermore, BNP Paribas Group has the strong expertise of agriculture industry financing, the franchise in Poland, BGZ BNP Paribas takes a leading position in the country while BNP Paribas Suisse is a leading provider of specialized trade solution for soft commodities traders in the world.