Business news from Ukraine

Oshchadbank concluded loan agreement for UAH 26.5 mln with spice producer Natur Svit

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.

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Oshchadbank granted loan of UAH 250 mln to Tavria B network

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.

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Cabinet replaced four of six independent members of Oshchadbank’s supervisory board

The Ukrainian government has confirmed for a new term the powers of two of the six independent members of Oshchadbank’s supervisory board – Juan Enrique Perez Calot and Anton Pyatygin – and appointed new ones to replace their four colleagues.
“The four new members will replace Baiba Apin (head of the supervisory board – IF), Michael Weinstein, Peter Briggs and Janne Harjunpaa,” Oshchadbank said in a statement Monday.
It is pointed out that the previous board, which also includes five government representatives, approved a strategy to transform Oshchadbank into a commercially attractive institution, taking into account possible privatization. However, the implementation of this strategy was suspended because of the armed aggression of the Russian Federation.
According to the press release, Michal Krupinski, Elizabeth Nelson, Philip Heasley and former Raiffeisen Bank Aval CEO and NEQSOL Holding Ukraine regional director Vladimir Lavrenchuk were appointed as new members of the supervisory board.
The bank does not give any other details about the new members of the NBU. Below is information from LinkedIn and the EBRD website about bankers and financiers with the same first and last names as the appointed new independent members of the SBU.
According to LinkedIn, Michal Krupinski is a senior advisor to Warburg Pincus and head of the board of Gemini Polska, and was also head of the board of the insurance company PZU and president of state bank Pekao S.A.
Philip Heasley was president and CEO of ACI Worlwide from 2005-2020, and now serves on the boards of Jopari Solutions Inc. and PayPower.
Elizabeth Nelson, according to the European Bank for Reconstruction and Development’s website, has been a vice president there since 2012, including vice president of risk and compliance and director of risk management from late 2016 through late 2019. Prior to that, she worked as head of credit at the Financial Services Authority’s (FSA, now PRA) Division of Risk Professionals in the U.K., and even earlier had a 30-year career at JPMorgan Chase.
According to the National Bank of Ukraine, by March 1, 2023 Oschadbank in terms of total assets was in second place (311.19 billion UAH) among the 65 operating banks in the country.

Oshchadbank has launched preferential lending program for agrarians for sowing season of 2023

State-owned Oschadbank (Kyiv) has launched a preferential lending program for agrarians for the 2023 sowing season to purchase seeds, plant protection products, microfertilizers and machinery from Spectrum-Agro LLC (Obukhiv, Kyiv region).
According to the press service of Oschadbank, farmers will be able to purchase agricultural machinery on credit at 5% and 9% per annum for working capital replenishment of up to UAH 90 million under the government program “Affordable Loans 5-7-9%”.
Microfertilizers, plant protection products and soybean seeds produced by Spectrum-Agro can be purchased at a rate of 0.01% per annum for up to UAH 20 million with a seasonally adapted repayment schedule, the release said.
According to Oschadbank, to obtain such a loan, it is enough to provide a simplified package of documents to obtain a decision on it. In addition to priority consideration of applications, all those who have taken advantage of the loan will be able to quickly receive a preliminary decision to replenish working capital through the online platform Agroapp.
The State Bank also reported that since February 24, 2022, it has provided about UAH 10 billion to agricultural enterprises under the Affordable Loans 5-7-9% program. The share of agricultural loans in the total portfolio of this program issued by Oschadbank during the war is 72%. The second place is occupied by trade enterprises, to which the bank issued 16% of loans under the affordable loan program.
“Spectr-Agro is a distributor of plant protection products, fertilizers and agricultural machinery from leading global and Ukrainian manufacturers (Deutz-Fahr, HARDI, Kockerling, Dieci, SOLA).
According to opendatabot, Spectrum-Agro increased its revenue by 1.2% to UAH 6 billion 262.6 million in 2022, while its net profit decreased by 20% to UAH 209.84 million.
State-owned Oschadbank, according to the National Bank, ranked 2nd in terms of total assets (UAH 311.19 billion) among 65 banks in the country as of March 1, 2023.

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Over the past two weeks, Oschadbank has concluded 149 loan agreements for a total of UAH 547 million under the Affordable Loans 5-7-9% program, the Ministry of Finance reported on its website.

According to the agency, in just two weeks, under this state program, all participating banks issued 247 loans in the amount of UAH 1.43 billion.

According to the Ministry of Finance, during the specified period, FUIB issued 26 additional loans for UAH 193 million, Credit Agricole Bank – 23 loans for UAH 163 million. Raiffeisen Bank – 11 loans for UAH 115 million, state-owned Ukrgasbank – three loans for UAH 12 million, ProCredit Bank – two loans for UAH 5 million, and state-owned Ukreximbank – one loan for UAH 19 million.

The Ministry of Finance clarified that during the period of martial law in Ukraine, 11,986 loans worth UAH 40.6 billion were concluded within the framework of the state program “Affordable loans 5-7-9%”, 44 banks participate in the program.

In total, since the start of the program on September 12, companies have received 46.808 thousand loans from authorized banks for a total of UAH 138.22 billion, of which 30.031 thousand from state-owned banks for UAH 54.4 billion.

Despite the absence of new loans in recent weeks from PrivatBank, it remains the leader in terms of the number and volume of issued financing – 19.39 thousand loans for UAH 19.67 billion. It is followed by Oschadbank – 6.67 thousand for UAH 19.67 billion and UAH 16.08 billion, respectively.

The top five also includes Raiffeisen Bank – 4.09 thousand loans for UAH 18.55 billion, state-owned Ukrgasbank – 3.18 thousand for UAH 11.74 billion and FUIB – 2.57 thousand for UAH 15.49 billion. In the second five – ProCredit Bank – 2.23 thousand for UAH 9.94 billion, Kredobank – 1.52 thousand for UAH 5.84 billion, Credit Agricole Bank – 1.4 thousand for UAH 8.28 billion, OTP The bank – 0.81 thousand for UAH 4.91 billion and the state-owned Ukreximbank – 0.79 thousand for UAH 6.36 billion.