OTP Bank offers SME clients investment loans to improve energy efficiency with possibility of compensation up to 20% of received funds
OTP Bank offers small and medium-sized enterprises loans for the purchase of equipment with the possibility of compensating part of the costs financed by the bank. Such loans are provided within the framework of the program to increase SMEs competitiveness in the EBRD’s Eastern Partnership countries.
As Nataliia Kondratchuk, director of the OTP Bank corporate financing department, reported: “The purpose of the program is the development of lending aimed at the purchase of energy-efficient machinery and equipment by micro, small and medium-sized enterprises, and the implementation of investments in energy-saving technologies. In particular, such financing is designed to meet the needs of local agricultural producers in updating the fleet of agricultural machinery with products of well-known global brands. At the same time, the borrower will be able to claim compensation for part of the expenses financed by the bank’s loan funds.”
The amount of compensation depends on the type of assets purchased and can reach 20% of the loan funds provided. Compensation is held in euro currency, approximately within a month after documentary confirmation of the intended use of funds by the borrower and verification of EBRD documents.
It is expected that the average loans amount under the program will be the hryvnia equivalent of 300,000 euros, but at the same time, the amount of lending to each individual borrower is determined depending on the details of the investment project, which must be acceptable to the EBRD. The minimum term of the loan is 24 months, the maximum is 60 months. The collateral for the repayment of the loan is the pledge of the purchased equipment, the financial guarantee of the borrower’s owners, and additional collateral if necessary. The loan agreement is implemented within the framework of the EBRD risk sharing program, so the financed project must also meet its criteria.
OTP Bank offers loans with such a unique compensation of expenses to its clients, whose number of employees is no more than 249 people, and whose annual income does not exceed the equivalent of EUR 50 million, or the annual balance sheet total is not more than the equivalent of EUR 43 million in hryvnia equivalent.
The borrower company must operate on the Ukrainian market for at least 3 years and meet other requirements established by OTP Bank and the EBRD, including a positive credit history.