JSC OTP BANK and the European Business Association (EBA) in partnership held an offline event for Ukrainian export-oriented companies, as well as all business representatives interested in export opportunities.
“Exporters: Talk & Network” became a platform for discussing the challenges faced by companies in international markets, as well as finding ways to expand exports of Ukrainian goods and services.
In particular, Volodymyr Mudryi, Chairman of the Board of OTP Bank, mentioned programs from international organizations as opportunities for exporters. In his speech, he emphasized that the Bank’s mission today is to build a bridge between global companies and donors represented in Ukraine.
“In order to work in our country, all international organizations need a responsible and reliable partner with a history and a good reputation. Someone with whom you can speak the same language. So, for global companies, we act as a kind of “translator” of the needs that exist in our market. This is one of our missions,” said Mr. Mudryi. He emphasized that OTP Bank was among the first to start cooperation with the EBRD, and now it also has extensive programs with IFC. “In addition, within the framework of cooperation with the USAID Project “Investments for Business Sustainability”, we have closed one program of co-financing for MSMEs on preferential terms ahead of schedule, and recently received the second tranche to support business,” the banker emphasized.
However, in addition to global instruments such as programs with international companies, the Bank also supports exporters in their daily work. According to V. Mudryi, OTP BANK has developed profitable and customized services and products – a separate module “Currency Contracts” in the Click OTPay client-bank system, which has complete information on the status of settlements under export and import contracts, currency SWAP, lending, the “Trading Platform” service, which gives the client the opportunity to fix the exchange rate from 1 cent, and also provides access to the exchange of exotic currencies. “We try to optimize and personalize the work with the Bank for our clients as much as possible, to make it as convenient as possible. To this end, we have set up many processes: for example, any new contract must be processed and confirmed by the Bank on the same day,” said Mr. Mudry.
During the event, he advised entrepreneurs to expand their knowledge of ESG (environmental, social, corporate governance) sustainability standards, which are increasingly required by international organizations from Ukrainian businesses. “It is inevitable and it is already knocking on our door. There are requirements from the EBRD, the World Bank, and the National Bank of Ukraine is also planning to develop its own standards. So now, at the level of the NABU (Independent Association of Banks of Ukraine), we are trying to bring together all the requirements so that there is a common understanding of what we will implement, as well as to develop a schedule for the transition to ESG standards,” said Mr. Mudryi.
Yulia Vitka, Deputy Project Manager, spoke about various programs for exporters and SMEs and the opportunities of the USAID Investment for Business Sustainability Project. Ruslan Gashev, Chairman of the Board of Export Credit Agency, presented ECA’s experience and outlined changes in the Agency’s work that allowed it to expand cooperation with business representatives.
“Exporters: Talk & Network: tools to support export-oriented companies” was the third offline event for exporters that OTP BANK and the European Business Association held in partnership. Previous meetings with business took place in the summer and spring of 2024.
JSC OTP BANK sold domestic government bonds (OVDP) from its own portfolio for UAH 573 million in equivalent to its individual customers through the OTP Bank UA application. This was reported by Valeria Ovcharuk, product owner of OTP Bank.
“The bank offers ample opportunities to purchase government securities and allows you to choose the optimal bond rate and maturity. You can buy government bonds in the app at any convenient time. This is an effective tool that allows not only to support the financial stability of Ukraine in times of war, but also to diversify your savings and receive additional income in both hryvnia and foreign currency,” said Ms. Ovcharuk.
The service is available in the OTP Bank UA application to all individuals who have opened a securities account in any branch of the Bank. The easy-to-use interface allows you to make a reliable and profitable investment in your future in just a few clicks, as the repayment of government bonds is 100% guaranteed by the state.
In total, since the beginning of 2024, OTP Bank’s individual clients have purchased government bonds for almost UAH 3.7 billion.
It should be reminded that the service of purchasing government bonds from its own portfolio in the OTP Bank UA application was launched at the end of May 2024. At the same time, the Bank allows its customers to buy bonds directly at auctions of the Ministry of Finance through the app.
To learn more about investing in domestic government bonds, please follow the link.
The USAID Business Sustainability Investment Project has awarded a second grant of $2.76 million to OTP Bank (Kyiv) to expand access to finance for micro, small and medium-sized enterprises (MSMEs), the bank’s website reports.
“More than 100 companies have already been financed under the first tranche. The new tranche of $2.76 million will bring the total grant amount to $4 million. The funds will be used to compensate for part of the interest rate for borrowing companies,” the website says.
It is noted that the grant program provides for business lending at an interest rate of 9.9% per annum in the first year of the loan agreement, and the difference with the market rate will be compensated by grant funds.
In the second year and thereafter, clients are obliged to pay interest on the use of credit funds at the rate of UIRD3m+5% per annum.
Under the terms of the program, micro, small and medium-sized enterprises with annual revenues of up to EUR 50 million and up to 250 employees belonging to one of the following target groups: relocated or affected by hostilities, companies in critical industries, and companies with female co-owners can receive financing on such terms.
The maximum loan amount that a company or a united group of companies can apply for is UAH 20 million, and the minimum is UAH 1 million.
“The grant program also applies to factoring agreements, under which the bank’s clients can receive up to 90% of the cost of supplies in the amount of UAH 2 million to UAH 20 million. Special conditions will apply to agricultural producers if they use the funds received under the grant program to purchase products from OTP Agro Factory’s partners,” the press release said.
The press service reminded that during the first stage of the program, which started in 2023, more than 100 Ukrainian enterprises were provided with financing.
According to the National Bank of Ukraine (NBU), as of July 1, 2024, OTP Bank ranked 11th (UAH 114.55 billion) in terms of total assets among 62 banks in the country. The financial institution’s net profit for 2023 amounted to UAH 3.71 billion.
JSC OTP BANK has received a second grant from the USAID Business Resilience Investment Project to expand access to finance for micro, small and medium-sized enterprises. More than 100 companies have already been financed under the first tranche. The new tranche of $2.76 million will bring the total grant amount to $4 million. The funds will be used to offset part of the interest rate for borrowing companies.
The grant program stipulates that the bank will lend to businesses at an interest rate of 9.9% per annum in the first year of the loan agreement. The difference between the rate for clients and the market rate will be compensated by grant funds. In the second and subsequent years, clients will pay interest on the use of credit funds at the rate of UIRD3m + 5% per annum (UIRD3m is the Ukrainian index of rates for three-month retail deposits).
Micro, small and medium-sized enterprises with an annual income of up to EUR 50 million and up to 250 employees belonging to one of the following target groups will be able to receive financing on favorable terms from OTP Bank
– relocated businesses or those affected by military operations
– companies belonging to critical economic sectors (agricultural production, production of building materials, electrical devices, transportation, logistics, processing, etc;)
– companies co-owned by women.
“The project started cooperation with OTP Bank under this grant program in September 2023. The results of our partnership are significant. During this time, more than 100 companies have received financing from the bank for almost UAH 550 million at a compensated interest rate. The objectives of the second stage of the program are even more ambitious – to provide access to financing and compensate the interest rate to more than 330 enterprises. We believe that such business support will contribute to the recovery of Ukraine’s economy, which is suffering tremendously from the war,” said Raphael Jabba, USAID Business Resilience Investment Project Chief of Party.
The maximum loan amount that a company or a united group of companies can receive under this program is UAH 20 million, and the minimum is UAH 1 million.
The grant program also applies to factoring agreements, under which the bank’s clients can receive up to 90% of the cost of supplies in the amount of UAH 2 million to UAH 20 million.
Special conditions will apply to agricultural producers if they use the funds received under the grant program to purchase products from OTP Agro Factory’s partners.
“The cooperation between OTP Bank and the USAID Business Sustainability Investment Project continues, and it means a lot to us. The bank has proven to be a reliable and efficient partner, time-tested, and one that fulfills its obligations flawlessly. The grant is extremely important for Ukraine and its economy, which is under incredible pressure in the context of the war. Thanks to this program, businesses in critical industries will receive much-needed support, companies affected by the war will be able to recover, and women entrepreneurs will receive an additional incentive to develop their business,” said Volodymyr Mudryi, CEO of OTP Bank.
During the first stage of the program, which began in 2023, more than 100 Ukrainian enterprises were provided with financing. Among them were companies from the agricultural sector, businesses dominated by women in the management team, as well as enterprises from critical sectors of the economy and those that were forced to relocate production due to the war. In addition, as part of the program, representatives of MSMEs used factoring services on favorable terms.
About the USAID Project “Invest for Business Resilience”
The USAID Investment for Business Resilience (IBR) Project is a five-year program implemented by DAI Global that supports systemic changes in Ukraine’s economy and increases the supply of financing available to Ukrainian businesses. The IBR project aims to transform the country’s financial sector into a well-functioning and competitive market that meets European Union standards and is integrated into international financial systems, while directly providing financing to businesses to ensure sustainable economic growth in Ukraine.
For more information on USAID IBR’s activities in Ukraine, please visit the USAID IBR Facebook page: https://www.facebook.com/IBRUAproject
About OTP BANK
JSC OTP BANK is one of the largest Ukrainian banks with foreign capital, which is a recognized leader in the country’s financial sector. It has been present on the market since 1998 and has a strong reputation as a socially responsible, reliable and stable structure offering European quality services to its customers. The bank provides a full range of financial services to corporate and private clients, as well as small and medium-sized businesses.
Since 2019, according to the decision of the NBU, OTP Bank has been included in the list of systemically important banks of Ukraine, which have a significant impact on the development of the country’s financial system.
In Ukraine, JSC OTP BANK is the flagship of the OTP banking group registered by the National Bank of Ukraine, which also includes OTP Capital AMC LLC, OTP Leasing LLC, Freefly non-state pension fund and OTP Pension open pension fund.
Since the beginning of 2024, the clients of JSC OTP BANK – individuals – have purchased domestic government bonds for a total amount of UAH 3.1 billion.
The number of transactions in the first half of the year amounted to 1897, which is 137% more than in the same period of 2023.
Investments in domestic government bonds in 2024 were made in two ways: customers purchased bonds directly at auctions of the Ministry of Finance through the OTP Bank UA app or from the Bank’s own portfolio, also using the app.
During the first and second quarters, securities totaling UAH 2.8 billion in equivalent were purchased at the Ministry of Finance auctions.
Total sales from the Bank’s portfolio by the end of the second quarter amounted to UAH 305 million in equivalent.
We remind you that the service for purchasing government bonds from its own portfolio in the OTP Bank UA application was launched two months ago, at the end of May 2024.
“Investing in domestic government bonds is not only an opportunity to support Ukraine’s financial stability in times of war, but also a good opportunity to diversify your savings and earn additional income in both hryvnia and foreign currency. Moreover, the repayment of funds is fully guaranteed by the state, so it is also a guarantee of the safety of savings. We offer our customers different ways to invest – they can buy government bonds directly from the auction or at any convenient time from the Bank’s portfolio, with the best rate, maturity, in the chosen currency, 24/7,” said Valeria Ovcharuk, product owner of OTP BANK.
In total, since the beginning of the full-scale invasion, OTP Bank’s individual clients have invested more than UAH 11.5 billion in government bonds in equivalent.
To learn more about investing in government bonds through the OTP Bank UA app, please follow the link.
OTP BANK JSC fills most of its managerial vacancies with internal candidates who were able to reveal themselves and realize their professional potential, said Kristina Feher, HR Director of OTP Bank, during a roundtable discussion on the personnel situation in the market organized by the Financial Club.
“Our internal growth programs are working effectively. Almost 70% of vacancies for managerial positions at the head office and in the branch network are filled by employees who develop, join training, and reveal their leadership qualities. We implement projects that allow our colleagues to delve deeper into the competencies they need, share experiences with other team members, and present their best practices. For example, we have mentoring programs from top management, as well as the Reading Club and the OTP Cinema Club, which combine the formats of interactive discussions of books and movies, thinking out of the box, and joint analysis of various success stories. And to share best practices within the company, we have been organizing Demo Day for several years in a row – an event for product teams that present new initiatives and solutions to all employees of the Bank,” said K. Feher.
According to her, OTP BANK is a financial institution with a strong team of professionals, which also gives young people without work experience the opportunity to prove themselves. “I believe that young staff is one of the key resources.
We fruitfully cooperate with 27 Ukrainian universities and twice a year we engage students for internships or training. Many of them stay with the Bank afterwards. In the first half of 2024, we started cooperation with 120 students, whom we will train over the coming months. Currently, there are 80 vacancies in the branch network, so we see an opportunity to close some of them through cooperation with talented young people. I can say that this approach is effective in our company,” added the HR Director.
The bank creates an environment in which employees feel protected and have the opportunity to realize themselves professionally. The staff is encouraged to develop and grow professionally, comfortable working conditions are created, and opportunities to be involved in work processes are provided. In addition, OTP BANK offers a flexible schedule, options to work remotely or in a hybrid format, as well as other individual approaches. “We remain as flexible as possible, so people can choose the format that they consider to be the most convenient and safe for organizing their working day,” said Kristina Feher.
According to the HR Director of OTP BANK, this has a positive effect. Employees appreciate reliability and stability, so the percentage of staff outflow is insignificant. Staff turnover in the first half of 2024 was less than 8%. At the same time, the Bank continues to actively develop various business lines, attract new specialists and implement initiatives that help it to be one of the leading companies in the financial market.
