IFC is providing OTP Leasing, Ukraine’s largest leasing company, with a $145 million financing package to boost access to financing for small and medium enterprises (SMEs), with a focus on women-led smaller companies and agribusinesses. The loan will help OTP Leasing maintain a sustainable funding base to provide continued access to finance for businesses.
The new package, which includes financing through IFC’s Managed Co-Lending Portfolio Program, will support Ukrainian SMEs operating in agriculture and agricultural services, food processing, transport and logistics, retail, and other industries affected by Russia’s invasion of Ukraine. It will also reinforce Ukraine’s leasing market by allowing smaller farmers to expand and upgrade their vehicle and agricultural machinery fleets. “We are honored to receive this substantial funding package from IFC. It will enable us to finance many more SME clients over the coming years and develop the sector further, increasing its contribution to Ukraine’s GDP,” said Andrey Pavlushyn, CEO of OTP Leasing Ukraine. “Our collaboration with OTP Leasing reflects IFC’s dedication to supporting Ukraine’s economic resilience. By addressing crucial financing gaps faced by smaller businesses, which are the backbone of Ukraine’s economy, together with OTP we support the role the private sector plays in maintaining jobs and providing critical goods and services in the face of Russia’s invasion of Ukraine,” said Lisa Kaestner, IFC’s Regional Manager for Ukraine and Moldova. In 2023, IFC established an aggregate of €50 million in risk-sharing facilities for OTP Bank and OTP Leasing in Ukraine to support smaller businesses and help de-risk and scale up SME finance. The facilities are part of IFC’s Economic Resilience Action (ERA) Program and wider World Bank Group efforts to support Ukraine. Since Russia’s invasion of Ukraine, IFC, together with partners, has committed $1.4 billion in financing to bolster the private sector with a focus on long-term investments. Key strategic areas include agriculture, SME financing, infrastructure (including renewable energy and digital sectors), and manufacturing construction materials, with a pipeline of $1.9 billion projected for new and existing clients by June 2025. The World Bank Group has been a crucial pillar in aiding Ukraine, mobilizing over $42 billion in financial support across sectors. That has helped maintain essential services such as health care, pensions, salaries, and social programs for 13 million Ukrainians as well as supporting the private sector. This article was initially published by IFC. |
