EBRD may partially cover ProCredit Bank's risks on new loans worth €70 million

The European Bank for Reconstruction and Development (EBRD) can provide support through its risk-sharing facility in the provision of new loans of up to €70 million by ProCredit Bank to small and medium-sized enterprises in Ukraine, particularly in key sectors of the economy such as agriculture, food processing, retail and logistics.

As stated on the bank's website on Wednesday, the EBRD Board of Directors intends to consider the relevant project at a meeting scheduled for April 9 of this year.

According to the document, the EBRD estimates its participation in the financing at 21 million euros.

The message emphasizes that in addition to credit support, program participants will be able to receive grant incentives after successful completion of investment projects.

The project envisages the allocation of up to EUR 14 million in risk-shared sub-loans for long-term investments in SMEs under the EU4Business-EBRD credit line for the modernization of equipment to EU standards and investments in sustainable and green technologies (at least 70% of the sub-limit).

The EBRD recalls that ProCredit Bank is a wholly owned subsidiary of ProCredit Holding AG and the main SME lender in Ukraine. With total assets of EUR 1.03 billion as of 2024, the bank ranks among the top 15 out of 61 banks operating in Ukraine, with a market share of approximately 1.2%.