On February 19, 2021, an agreement was concluded between PJSC MTB BANK, the Ministry of Finance of Ukraine and the State Export-Import Bank of Ukraine, which provides for lending to agricultural enterprises under a joint project of Ukraine and the European Investment Bank "Ukraine AGRI-FOOD APEX Loan".
The agricultural sector of Ukraine has great potential for development. Small and medium-sized enterprises in this industry have flexibility and high adaptability to change, but it is quite difficult for them to attract financing, even if they have good offers for investors. Timely crediting of such enterprises promotes their development and allows not only to increase their share of the domestic market, but also to work successfully on foreign trading platforms. For enterprises that produce grain and oilseeds, are engaged in fish farming and aquaculture, it is possible to obtain credit through the Finance Contract signed between Ukraine and the European Investment Bank.
Under the Project, EUR 400 million in loans are used to finance medium- and long-term investment needs and medium- and long-term working capital of enterprises in the agricultural sector of Ukraine's economy.
Lending from the EIB under this Project and the EU Guarantee is possible provided that it meets the requirements of the EIB * in accordance with the terms of the Finance Contract.
The following private enterprises have the opportunity to take part in the Project:
The term of the Sub-Loans granted to the Final Beneficiaries must be at least 2 years and must not exceed the economic and technical duration of the Sub-Project to be financed. The loan can be used for financing with a maximum value of € 50 million, but the amount of sub-financing from the EIB cannot exceed € 25 million.
Investments to be added to value chains for growing cereals, oilseeds and aquaculture / fish farming
The condition of financing under the Project is the compliance of the sub-borrowers with the following requirements:
The project does NOT finance the following activities:
MTB BANK has been actively developing lending to farmers for several years in a row thanks to developed partnership programs. And now the bank's customers will be able to finance for a long time - up to ten years at reduced interest rates.
Thanks to the participation of the European Investment Bank, the bank's clients will receive financial advantages. MTB BANK will provide financial advantage to the Final Beneficiaries, which will be reflected in a favorable interest rate. Such financial benefit will be at least 100 basis points (representing 1% per annum) compared to the annual interest rate that MTB BANK would apply to such loans without the participation of the European Investment Bank.
More information can be obtained by contacting:
Nagorska Olga, phone: +38 044 521 03 82, e-mail: ONagorskaya@mtb.ua
The European Investment Bank (EIB) is an international financial organization (IFI) whose shareholders are the member states of the European Union (EU). The bank was established in 1958, in accordance with Article 308 of the Treaty on the Functioning of the European Union. The EIB, together with local financial institutions, is involved in financing programs and investment projects that contribute to the development of the country where they are implemented and to the achievement of EU policy goals.
PJSC MTB BANK has been operating in the financial market of Ukraine since 1993, has more than 50 branches in 12 regions of Ukraine.
* EIB’s Guide to Procurement - link
EIB’s Environmental and Social Standards - link
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