OTP Bank (Kyiv) has signed a loan agreement with Concern Khlibprom PJSC, part of OKKO Group, for UAH 200 million for a three-year period to replenish working capital, the financial institution said in a release on Monday.
“Financing of food industry enterprises is currently one of the priority areas for the development of OTP Bank’s corporate business. The agreement with Concern Khlibprom is another confirmation of the successful implementation of this strategy,” Alla Biniashvili, a member of the Management Board of OTP Bank, said in the statement.
There is no information on the cost of the loan and its other terms.
According to the release, Concern Khlkbprom is one of the largest enterprises in the Ukrainian bread market, producing over 160 tons of bread, bakery, confectionery, and semi-finished dough and coffee products daily. The company’s structure includes five production units with a total staff of over 3000 employees.
In particular, the company’s products are represented on the Ukrainian and international markets by such brands as Agrola, Vinnytsiakhlib, Bandinelli, TM 2GO, Grill & Bakery, and Ljubljana. Khlibprom also owns its own coffee brand Harmony Sentivi.
“In 2022, Concern Khlibprom increased its net profit by 23.7% to UAH 21.1 million on revenue growth of 15.4% to UAH 1 billion 702.1 million, and its assets grew by 8.4% to UAH 920.3 million. Long-term liabilities increased by 1.2% to UAH 270.2 million, while current liabilities increased by 16.5% to UAH 327.7 million.
Effective interest rates on hryvnia loans ranged from 13.31% to 15.95% at the beginning of this year.
OTP Bank, a wholly owned subsidiary of the Hungarian OTP Bank Plc, was 10th among 63 Ukrainian banks in terms of total assets (UAH 103.14 billion) as of the beginning of October 2023.
Concern Khlibprom, LOAN, OTP BANK
