The portfolio of loan agreements concluded by state-owned Oschadbank with agricultural, food and processing companies in the large corporate business segment has tripled during the war and as of October 1, 2024, reached UAH 9.9 billion compared to UAH 3.3 billion in 2021, Yuriy Katsiyon, Deputy Chairman of the Board of the bank in charge of corporate business, said in an interview with Interfax-Ukraine.
According to him, the volume of agreements concluded to support enterprises in these segments among Oschad’s corporate business clients in 2024 amounted to UAH 1.4 billion, or 20% of the total volume of agreements concluded during this period.
“We finance companies that have suffered from military aggression, such as Nibulon. We financed the first military sowing season, setting an example for all other banks to start lending. As a result, we more than doubled our corporate loan portfolio among agricultural, food and processing companies in the year from 2022 to 2023, from UAH 4 billion to UAH 8.8 billion. As of October 1, 2024, this corporate business portfolio reached UAH 9.9 billion,” he said.
Mr. Katsion also said that Oschad’s share in financing businesses in all industries has reached 14% of the total market, which is the second place among Ukrainian banks. In addition, Oschad ranks second among all legal entities in financing in the agricultural business segment and food production. These loans account for UAH 23.7 billion, or more than 15% of the financial institution’s portfolio.
The Deputy Chairman of the Board added that the volume of concluded loan agreements in the agrarian, food and processing industries, food trade in the segment of large corporate business in 2021 amounted to UAH 0.87 billion, in 2022 – UAH 4.6 billion, in 2023 – UAH 11 billion, and in 2024 – UAH 4 billion. In total, during the war, Oschad provided almost UAH 20 billion in loan agreements for corporate business.
The number of Oschad’s clients in this segment reached 15 business groups or 30 companies. At the same time, more than 80% of them started borrowing from the bank for the first time during the war.
“Since the beginning of 2023, we have increased our market share by 1.5 times. This year alone, the growth is 4%,” summarized the Oschadbank’s corporate business manager.
According to the financial institution, the top five banks in agricultural financing are as follows: Raiffeisen, Oschadbank, Ukreximbank, FUIB, and Credit Agricole Bank.
According to the National Bank of Ukraine, as of September 1, 2024, Oschadbank ranked 2nd (UAH 425.75 billion) in terms of total assets among 62 banks in the country. The financial institution’s net profit for the first eight months of this year amounted to UAH 11.18 billion.
State-owned Oschadbank has entered into a loan agreement with Friendly Wind Technologies LLC (FWT), a Ukrainian wind energy equipment manufacturer relocated from Kramatorsk in 2022, to purchase a LIEBHERR LG 1750 self-propelled crane worth UAH 147 million, the bank’s press service reports.
In a release on Thursday, the company said that the project was financed using the opportunities of the state program “Affordable Loans 5-7-9%”, and the crane with such characteristics of lifting capacity, lifting height, and boom reach will be the second in Ukraine.
Oschadbank emphasized that the agreement is a consistent continuation of the partnership with the only manufacturer in Ukraine that produces 5.2 MW multimegawatt class wind power equipment on a turnkey basis.
“The degree of localization of production at FRANDLEY WIND TECHNOLOGIES LLC is currently about 40%, and the company plans to increase it to 70% in the near future, which will reduce the cost of wind turbines and help reduce the payback period of projects. The acquisition of our own assembly crane is one of the steps in this direction of the company’s development, which Oschadbank will continue to support,” said Yuriy Katsiyon, Deputy Chairman of the Board in charge of corporate business.
According to him, investments in the development of green energy are among the strategic goals of Oschadbank.
“In the current environment, the support of state-owned banks such as Oschad is crucial for the successful implementation of our projects. Thanks to bank financing, we not only introduce the latest technologies, but also promote energy decentralization, which is critical for Ukraine’s energy security during the war,” commented Vladyslav Yeremenko, CEO of FVT.
The release specifies that FVT has already started building the first phase of wind farms with 16 wind turbines.
As of early October, the first wind turbine installed in the Nyzhnevoritskaya community produced the first million kWh of green energy. The total installed capacity of all planned wind farms is estimated at 1.5 GW. The project is currently being implemented at the expense of private investors, and will be subsequently financed through bank syndicated lending. Oschadbank will also participate in supporting the project, the release said.
As reported, in March 2024, Yuriy Katsiyon said that Oschadbank would take part in the implementation of the project of Friendly Wind Technologies LLC to build a 520 MW wind farm in western Ukraine.
“FWT is engaged in the design and manufacture of components for wind power plants. It is responsible for the production of equipment in the construction project of the Ostrovsky wind farm of the Wind Parks of Ukraine company with a total installed capacity of 80 MW, located on the territory of the Nyzhnivoritska community on the border of Lviv and Zakarpattia regions.
In 2022, the Kramatorsk Heavy Machine Tool Plant, where wind turbines were manufactured by Fourlander Wind Technology, decided to relocate from Kramatorsk to Perechyn, Zakarpattia region.
According to the Opendatabot resource, Friendly Wind Technology LLC was registered in Perechyn in October 2022, with Vladyslav Yeremenko as the ultimate beneficiary and director.
State-owned Oschadbank (Kyiv) has signed the first loan agreement for UAH 28.7 million at 9% per annum under the Affordable Loans 5-7-9% program for the installation of a 2.5 MW gas reciprocating power plant, the financial institution’s website reports.
“The client, which supplies raw materials to many Ukrainian producers of essential goods, will receive a loan of UAH 28.7 million for a period of 5 years. The capacity of the plant is 2.5 MW; this will secure production in case of a prolonged power outage,” the press release says.
The bank did not disclose the name of the company.
As reported, in the second decade of July, the government launched lending to entrepreneurs and businesses under the Affordable Loans 5-7-9 program for the purchase and installation of gas turbine, gas piston or biogas generating units. The maximum loan amount is up to UAH 150 million and the loan term is up to 10 years.
According to the National Bank of Ukraine (NBU), as of June 1, 2024, Oschadbank ranked 2nd (UAH 415.82 billion) in terms of total assets among 63 banks in the country. Last year, the financial institution’s net profit amounted to UAH 5.98 billion.
On June 17, JSC “Oschadbank” opened offers of bidders for voluntary medical insurance of employees with a budget of UAH 114.8 million, according to the e-procurement system “Prozorro”.
According to the report, the price offer of the only bidder IC “VUSO” amounted to UAH 114.2 million.
As reported, the company was the winner of a similar tender a year earlier.
IC “VUSO” was founded in 2001. The company holds 50 licenses: 34 – for voluntary and 16 – for compulsory types of insurance. It is represented in all regions of Ukraine. It is a member of ITSBU and UFS, a participant of Direct Loss Settlement Agreement and a member of Nuclear Insurance Pool.
State-owned Oschadbank (Kyiv) has entered into a UAH 26.5 million loan agreement with spice exporter and producer Natur Svit, and provided an UAH 8 million grant under the e-Work program to Sumy Textile Company, the bank’s chairman of the board, Serhiy Naumov, said on Facebook.
He clarified that the loan to Natur-Svit was issued under the state program “Affordable Loans 5-7-9%” and in cooperation with the Export Credit Agency (ECA) as part of the initiative to insure foreign economic contracts.
According to Naumov, the grant to Sumy Textile Company, which produces hosiery, was provided in the area of processing.
The Oschadbank CEO noted that over the past year, the financial institution’s loan portfolio for MSMEs in Sumy region grew by 29% to almost UAH 1 billion, and the bank’s market share in the region was 25% at the beginning of the year.
According to the Clarity Project, Natur Svit (Kyiv) was registered in November 2008, with Andriy Inshyn listed as the ultimate beneficiary. The company’s revenue in 2023 decreased by 10.9% to UAH 220.8 million, while net profit increased by 4.7% to UAH 29.5 million.
According to the Clarity Project, Sumy Textile Company’s revenue in 2023 decreased by 34.9% to UAH 151.1 million, while net profit decreased by 4.6 times to UAH 7.47 million. The company was registered in April 2022 and is owned and operated by Oleksandr Karpov.
According to the National Bank of Ukraine (NBU), as of February 1 this year, Oschadbank ranked second in terms of total assets (UAH 369.56 billion) among 63 banks operating in the country.
State-owned Oschadbank provided a UAH 250 million revolving credit line to Tavria Plus, a private enterprise (PE) that is part of the Tavria B retail chain, in August as part of the state program “Affordable Loans 5-7-9%,” the financial institution’s website reports.
“During the period of full-scale war, we have already signed five loan agreements with this retail chain totaling UAH 865 million,” said Yuriy Katsiyon, Deputy Chairman of the Board of Oschadbank in charge of corporate business.
Vyacheslav Pysmenyuk, director of Tavria Plus, noted that by combining different types of credit support, they managed not only to balance payments with suppliers but also to further develop the network.
It is noted that Oschadbank has been cooperating with Tavria Plus since 2014. In addition, during 2022-2023, the company additionally received support from the state bank on general terms.
The state bank clarified that the credit line for Tavria B was the third such line for retailers under the state program “Affordable Loans 5-7-9%”. Their purpose is to replenish working capital. The total amount of funding provided by the state program during the full-scale war amounted to UAH 580 million.
According to the retail chain’s website, Tavria V has been operating since 1992 and includes 135 supermarkets and shopping centers, meat and fish processing plants, confectioneries, culinary shops, bakeries, a brewery, garment and knitwear production, and a large logistics center. The chain employs 4,500 people.
According to Opendatabot, the ultimate beneficiaries of Tavria-V LLC are Boris and Mikhail Muzalev, with 60% and 40% of the company’s shares, respectively.
