OTP Bank offers small and medium-sized businesses loans for the purchase of equipment with the possibility of reimbursement of part of the costs financed by the bank. Such loans are provided as part of the EBRD’s SME Competitiveness Program in the Eastern Partnership countries.
According to Natalia Kondratchuk, Director of Corporate Finance at OTP Bank: “The purpose of the program is to develop lending aimed at purchasing energy-efficient machinery and equipment by micro, small and medium-sized enterprises and investing in energy-saving technologies. In particular, such financing is intended to meet the needs of local agricultural producers to upgrade their agricultural machinery fleet with products of well-known global brands. In doing so, the borrower will be able to claim compensation for part of the costs financed by the bank’s credit facilities.”
The amount of compensation depends on the type of assets acquired and can reach 20% of the loan proceeds. The reimbursement will be made in euros, approximately within a month after the borrower has documented the intended use of the funds and the EBRD has verified the documents.
The average amount of loans under the program is expected to be the hryvnia equivalent of EUR 300 thousand, but the amount of each loan is determined by the details of the investment project, which must be acceptable to the EBRD. The minimum loan term is 24 months and the maximum is 60 months. The loan is secured by a pledge of the purchased equipment, a financial guarantee of the borrower’s owners and additional collateral if necessary. The loan agreement is implemented under the EBRD’s risk-sharing program, so the project to be financed must also meet its criteria.
OTP Bank offers loans with such unique cost compensation to its clients with no more than 249 employees and annual revenues not exceeding the equivalent of EUR 50 million or the currency of the annual balance sheet not exceeding the equivalent of EUR 43 million in UAH equivalent.
The borrower company must have been operating in the Ukrainian market for at least 3 years and meet other requirements set by OTP Bank and the EBRD, including a positive credit history.
In December, OTP Bank made a charitable contribution of UAH 11 million to the Superhumans Center. This amount includes UAH 10 million for the creation and provision of personalized wards for the Superhumans Center, as well as UAH 1 million for prosthetics for the center’s patients.
“In this powerful partnership with the Superhumans Center, we are inspired and motivated to seek and find new opportunities to support our heroes. As a result, the patients will receive the necessary rehabilitation, and the center will receive additional equipment,” said Volodymyr Mudryi, CEO of OTP Bank.
The total amount of OTP Bank’s assistance to the Superhumans Center has already amounted to UAH 21 million: in addition to the UAH 11 million just transferred, more than UAH 3 million was raised at a charity auction dedicated to the Independence Day of Ukraine, and OTP Bank added to these funds and transferred another UAH 5 million to the Superhumans Center to create an educational center on its basis. In addition, the bank transfers UAH 1 million to the Superhumans Center’s account on a monthly basis.
“As long as our heroes need support, we will not stop! We urge all our customers and partners to join the bank’s charitable initiatives,” said Lesia Syrota, OTP Bank Retail Sales Director and team leader of the OTP Bank Helps Ukraine project.
Thus, until December 25, OTP Bank is holding a charity Christmas auction, the proceeds from which will also be transferred to the Superhumans Center for prosthetics for defenders who lost their limbs in the war and need comprehensive treatment and rehabilitation. All customers of the bank can take part in the charity auction in the OTP Bank UA app. The full list of lots is available on the website.
We remind you that in September OTP Bank and Superhumans Center signed an agreement on charitable donation for 2023-2024.
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.
OTP Bank has launched a charity Christmas auction, which will last from December 4 to December 25. All the funds raised will be transferred to the Superhumans Center to provide prosthetics to defenders who lost their limbs in the war and need comprehensive treatment and rehabilitation.
The auction participants will be offered exclusive lots: a Christmas lot from the First Lady, a flag of Ukraine signed by Valeriy Zaluzhny, boxing gloves signed by Vitali Klitschko, Elina Svitolina’s tennis racket, a T-shirt signed by billionaire Buffett, a collection of works by Serhiy Zhadan, as well as commemorative coins, stamp sets, unique Christmas decorations – all signed by celebrities.
All customers of the bank can take part in the charity auction through the OTP Bank UA app.
The full list of lots is available on the website.
“It is through charity that every responsible business today can and should help society. After all, the country, the economy, citizens, and, of course, our defenders need support. This is the second major charity auction held by OTP Bank to raise funds for prosthetics for our heroes,” said Volodymyr Mudryi, CEO of OTP Bank.
“I would like to draw attention to a unique opportunity, a feature that no other bank has: the auction is held online in the OTP Bank UA application. I am sincerely grateful to our development team who managed to implement such a seemingly “useless” feature in terms of banking operations, but such a relevant one for charity, which will help each client both to join the auction and simply donate to Superhumans. The aesthetic and emotional component is also important – those who make a donation will receive a unique author’s “shirt” on their bank card by Christmas. Let’s do a good deed and help our 25 Heroes by December 25!” called Lesia Syrota, OTP Bank Retail Sales Director and team leader of the OTP Bank Helps Ukraine project.
She also emphasized that the lots presented at the auction are unique. “For example, collectible cards are a limited collection: “MOST WANTED. Ukrainian edition”, which cannot be found on sale. Or a flag of Ukraine with the DIU emblem and Kyrylo Budanov’s signature, or a didukh signed by the genius Ada Rogovtseva, a symbol of Christmas in Ukraine. But the most important thing is that the funds raised will be used to provide real help to our soldiers in need of prosthetics. And it is in your power to support Ukrainian heroes,” summarized the project’s team leader.
Superhumans Center is an ultra-modern center for the rehabilitation of adults and children affected by war, established on the basis of the Yuriy Lypa Lviv Regional Hospital for War Veterans and the Repressed in April 2023. The center provides prosthetics, complex reconstructive surgery, rehabilitation and psychological support to Ukrainians who have been injured in the war. The center plans to treat up to 3,000 patients annually.
One of the largest grain market operators in Ukraine, JV Nibulon LLC (Mykolaiv), has agreed to restructure its loan agreement with OTP Bank, the grain trader’s press service reported on Facebook.
“We are grateful to the bank for the speed of decision-making and constructive approach in resolving the issue of restructuring the company’s financial obligations in such difficult times for the Ukrainian economy,” said Iryna Levkivska, CFO of the grain trader.
At the same time, Nibulon noted that the addition of another bank with foreign capital to the proposed restructuring terms once again emphasizes the confidence of foreign financial institutions in the company and Ukrainian business in general.
As reported earlier, Nibulon agreed with Kredobank to restructure the terms of the loan agreement, which was extended for six years with a preferential interest rate and deferred repayment of the principal. A similar agreement on loan prolongation for 6 years was reached with Creditwest Bank Ukraine (JSC West Finance and Credit Bank). An agreement on long-term restructuring of financial liabilities was signed with JSB Ukrgasbank.
JV Nibulon LLC was established in 1991. Prior to the Russian military invasion, the grain trader had 27 transshipment terminals and crop reception complexes, a one-time storage capacity of 2.25 million tons of agricultural products, a fleet of 83 vessels (including 23 tugs), and owned the Mykolaiv Shipyard.
“Before the war, Nibulon cultivated 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries.
In 2021, the grain trader exported the highest ever 5.64 million tons of agricultural products, reaching record volumes of supplies to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons, and in the second half of the year – 3.71 million tons.
Nibulon’s losses from Russia’s full-scale military invasion have reached $400 million. The grain trader is currently operating at 30% of capacity and has set up a special unit to clear agricultural land of mines.
Net profit of OTP Bank for January-June 2023 amounted to UAH 2 billion 854.46 million compared to net loss of UAH 783.06 million in January-June 2022, according to the unconsolidated semi-annual report of the bank.
According to it, in particular, net profit in the second quarter of this year reached UAH 1 billion 395.28 million, which is 27.1 times higher than the net profit for the same period last year.
It is indicated that net interest income for the first half of the year increased by 46.3% to UAH 4 billion 306.59 million, including in the second quarter the growth amounted to 42.5% to UAH 2 billion 154.61 million.
Meanwhile, net commission income in January-June this year increased by 35.4% to UAH 612.064 million, including in the second quarter – by 55.7% to UAH 290.32 million.
A significant contribution to the improvement of the financial result was made by the reduction of the loss from the reduction of utility in the first half of this year to UAH 314.08 million, while for the same period last year this figure amounted to UAH 3 billion 573.13 million.
Specifically, for the second quarter of 2023, the loss from utility curtailment narrowed to UAH 170.81m compared to UAH 1 billion 364.51m in the second quarter of 2022.
The bank points out that its total profit for the first half of this year reached UAH 3 billion 247.74 million against a loss of UAH 872.35 million for the first half of last year, including a total profit of UAH 1 billion 772.90 million in the second quarter-2023 against a loss of UAH 162.81 million in the second quarter-2022.
According to the report, in January-June this year, the bank’s assets grew by UAH 1.92 billion, reaching UAH 92.93 billion as of June 30.
Such growth is explained by the increase in cash and funds with the NBU from UAH 4.75 billion to UAH 9.67 billion and investments in securities – from UAH 32.85 billion to UAH 37.37 billion, while loans and advances to clients decreased from UAH 29.92 billion to UAH 23.91 billion, and debts of other banks – by UAH 1.2 billion to UAH 20.51 billion.
Customer funds of OTP Bank decreased for the first half of 2023 from UAH 77.73 billion to UAH 76.19 billion, meanwhile the bank’s capital increased from UAH 11.63 billion to UAH 14.87 billion, including retained earnings – from UAH 3.77 billion to UAH 6.62 billion.
OTP Bank, a 100% subsidiary of the Hungarian OTR Bank Plc, was the eighth among 65 Ukrainian banks in terms of total assets (UAH 103.327 billion) at the beginning of June this year. The bank has a network of 72 branches in Ukraine.
