Overall, PrivatBank will be able to provide Ukrainian entrepreneurs in critical industries with EUR 240 million in new financing as part of the program

Under the agreement signed, the EBRD provides guarantees in the amount of EUR 60 million. The unfunded risk-sharing instrument covers up to 50% of the credit risk in up to EUR 240 million of PrivatBank's newly originated loans.

The Risk Sharing Program agreement between the European Bank for Reconstruction and Development (EBRD) and PrivatBank contains two components.

Under the first (at least 80% of the total risk shared portfolio), the risk-sharing instrument will help to access financing for working capital and investment purposes for micro, small, medium and large enterprises operating in such critical sectors as agriculture and agricultural services, food and light industry, construction production and services, transport and logistics, tourism and culture, retail.

The remaining up to 20% of risk-shared loans will support private MSMEs’ long-term investments in EU compliant and green technologies. Eligible sub-borrowers will also receive EU-funded technical assistance and investment incentives upon completion of their investment projects.

"The signing of the agreement with the EBRD is a significant moment as it is the first international agreement for PrivatBank. We highly appreciate the level of trust from this well-known international financial institution towards our bank and Ukraine overall, - noted Gerhard Boesch, Chairman of the Board of Privatbank. - For us, as the market leader providing financial services to micro, small and medium businesses, cooperation with the EBRD is a consistent step. Together, we can do much more for the development of the Ukrainian economy."

Among the advantages of the program - opportunity to obtain financing and develop, upgrade or strengthen business through investments in more ecological technologies that meet EU requirements, as well as the opportunity to receive a grant in the amount of up to 30% of the cost of an investment project that has been successfully implemented in accordance with the program requirements. More about the terms and opportunities of financing under the EBRD program - on the website pb.ua/ebrd.

Boilerplate:

PrivatBank is the largest state-owned bank of Ukraine. The Bank serves over 18 million active customers, while over 70% of Ukrainians use its services. The Bank is the leader in retail, introduces new and upgrades existing services for small and medium businesses, has created a strong digital ecosystem and a wide network of over 1,100 branches, 5,000 ATMs, 10,000 self-service terminals and 223,000 POS-terminals across the country. PrivatBank works to drive Ukraine’s economy, support the residents and the businesses despite the war.

The EBRD is Ukraine’s largest institutional investor. In 2022 alone, it deployed €1.7 billion and mobilised a further €200 million of support from partner financial institutions.

The Bank has pledged to provide Ukraine with finance of €3 billion by the end of 2023