Agrarian market of Ukraine received 17 million dollars from the German government

On the 19th of June an agreement on granting a subordinated loan was signed between the German development bank KfW on behalf of the German government and OTP Leasing. The subordinated loan was provided within the framework of the "agro-finance" program. This is the first subordinated loan in Ukraine provided to the leasing company, Agroperspectiva reported.

OTP Leasing noted that it will strengthen the capital and allow the company to attract new loans from international lenders. As a result, OTP Leasing will be able to significantly expand its business, especially small and medium-sized enterprises in the agricultural sector. After all, the funds received will mainly be used to develop cooperation in the agrarian industry.

"KfW on behalf of the German government improves access to finance for small and medium-sized enterprises (SMEs). So far, KfW has cooperated with banks in the Ukrainian financial sector. However, leasing is a good alternative for financing investments, especially for SMEs in the agricultural sector. Therefore, we are very pleased with our new partner, OTP Leasing, and by providing it with a subordinated loan, we are starting a new financial instrument in Ukrainian leasing," Mr. Lutz Horn-Haacke, director of KfW in Kyiv said.

OTP Leasing receives 17 million dollars for 7 years with payment at the end of the term. The loan will allow Ukrainian companies to issue $ 180 million this year instead of the planned 100 million. "It is a real increase in capital for OTP Leasing, the loan will allow us to work with small and medium-sized businesses and further increase our share in the leasing market, which currently stands at about 40-45%," Andrii Pavlushyn, CEO of OTP Leasing noted.

"The agreement between OTP Leasing and KfW is an important signal for the Ukrainian business and for the agrarian industry as a whole, because KfW is a big state European market maker," the top manager of the leasing company said.

KfW is Germany's leading development bank for the domestic economy and for developing countries and is in the process of transformation. 80% of KfW's capital belongs to the German Federal Government and 20% to the Federal States. With assets of more than 472 billion euros as of the end of 2017 KfW belongs to the largest banks in Europe.

On behalf of the German government, KfW provides loans and grants in Ukraine for investments in energy efficiency, support for small and medium-sized businesses, and rehabilitation of communal and social infrastructure. More information is available via link www.kfw.de.