JSC OTP BANK has signed its first loan agreement with a Ukrainian company to finance distributed generation. Support in the amount of UAH 16.6 million for the purchase of a cogeneration gas piston unit will be provided toAVIS LLC.
“The issue of electricity supply is extremely important for the economy, for business and for every citizen. The Bank has set itself the goal of stimulating the development of the market for energy-independent solutions. We are ready to offer our customers the best deals and favourable conditions that will guarantee uninterrupted operation in the face of electricity shortages,” said Olga Volkova, Director of the Sales Department for Medium and Small Corporate Clients of OTP Bank.
The agreement is a concrete step by the Bank to implement the Memorandum on lending to energy infrastructure restoration projects. The document defines the strategic direction of the credit policy for financing investment energy projects. Assistance is provided for the construction and purchase of solar, wind, biogas, gas turbine and gas piston power plants, industrial batteries, and cogeneration units.
With the financial support of the Bank, a company that produces a wide range of food products will be able to purchase a Jenbacher JMS 320 GS-N.L. gas piston cogeneration unit with a capacity of 1,066 kW. The installation of such a unit will provide the company with maximum independence from the power grid and improve its economic efficiency. The equipment is beneficial because natural gas is an affordable fuel. In addition, it is a good investment in the future, as this modern technology does not have a negative impact on the environment.
As a reminder, on 25 June 2024, JSC OTP BANK and leading banks signed a Memorandum on lending to energy infrastructure restoration projects. Representatives of 17 financial institutions signed the document.
Japan International Cooperation Agency (JICA) will provide Ukraine with a $100 million loan for 30 years at 1% per annum with a grace period of 10 years, the Ministry of Finance said on its website.
According to the press release, the agreement was signed on Monday by Finance Minister Serhiy Marchenko and JICA President Dr. Akihiko Tanaka.
“The concessional loan of 13 billion yen, which is the first part of the agreed financial assistance between Ukraine and Japan, will be directed to the state budget to finance priority expenses. First of all, to support the most unprotected population of Ukraine,” the press service of the ministry said, citing Marchenko.
The signed agreement refers to the budgetary support for the stabilization of the situation in Ukraine, in particular, the provision of priority social, and humanitarian expenditures, health care, support for internally displaced persons, and other priority expenditures, the Finance Ministry added.
The representatives of Ukraine and the European Union have signed a memorandum of understanding and a loan agreement on providing the fourth program of macro-financial assistance to Ukraine (MFA IV) in the amount of EUR1 billion.
On the part of Ukraine, the documents were signed by Acting Minister of Finance Oksana Markarova and Governor of the National Bank Yakiv Smolii, from the side of the EU by Vice President of the European Commission for Euro and Social Dialogue, Financial Stability, Financial Services and Capital Markets Union Valdis Dombrovskis.
The ceremony of signing the loan agreement and the memorandum was attended by President of Ukraine Petro Poroshenko and Prime Minister of Ukraine Volodymyr Groysman.
After signing, the head of state thanked the European Commission and Dombrovskis for “the comprehensive and great support the European Union provides to the Ukrainian government and the Ukrainian people.”
“This is a great help in carrying out the reforms and supporting the reforms – not only financial, but also consultative – and you are rightfully a participant and co-sponsor of the reforms that have been held in Ukraine over the past four years,” Poroshenko said.
