UKRAINE AGRI-FOOD APEX LOAN

Join Project of Ukraine and the European Investment Bank

"UKRAINE AGRI-FOOD APEX LOAN"

 

            On February 19, 2021, an agreement was concluded between PJSC MTB BANK, the Ministry of Finance of Ukraine and the State Export-Import Bank of Ukraine, which provides for lending to agricultural enterprises under a joint project of Ukraine and the European Investment Bank "Ukraine AGRI-FOOD APEX Loan".

The agricultural sector of Ukraine has great potential for development. Small and medium-sized enterprises in this industry have flexibility and high adaptability to change, but it is quite difficult for them to attract financing, even if they have good offers for investors. Timely crediting of such enterprises promotes their development and allows not only to increase their share of the domestic market, but also to work successfully on foreign trading platforms. For enterprises that produce grain and oilseeds, are engaged in fish farming and aquaculture, it is possible to obtain credit through the Finance Contract signed between Ukraine and the European Investment Bank.

Under the Project, EUR 400 million in loans are used to finance medium- and long-term investment needs and medium- and long-term working capital of enterprises in the agricultural sector of Ukraine's economy.

Lending from the EIB under this Project and the EU Guarantee is possible provided that it meets the requirements of the EIB * in accordance with the terms of the Finance Contract.

The following private enterprises have the opportunity to take part in the Project:

• Small and medium-sized enterprises (SMEs) - up to 249 employees;
• Medium capitalization enterprises (MID-CAPs) - from 250 to 3000 employees;
• Eligible enterprises (EEs) - with more than 3,000 employees.

 

The term of the Sub-Loans granted to the Final Beneficiaries shall be at least 2 years and shall not exceed the economic and technical duration of the Sub-Project to be financed. The loan can be used to finance projects with a maximum value of € 50 million, but the amount of sub-financing from the EIB cannot be less than € 50,000 and cannot exceed € 5 million.

 

Purpose

 

Investments to be added to value chains for growing cereals, oilseeds and aquaculture / fish farming

 

• o Production of basic cereals / oilseeds, including investments in agricultural machinery and equipment, as well as modernization of production infrastructure.
• Drying / cleaning of grain and oilseeds, expansion, modernization and certification of facilities for sorting / testing and storage.
• Expansion, modernization and certification of facilities for processing and distribution / logistics of grain and oilseeds.
• Resumption of aquaculture and fisheries production, including infrastructure and pond development, fisheries development, shore-based fishing infrastructure and fish farming measures.
• Fish processing and conservation facilities and related infrastructure, including refrigeration chain logistics.

 

The condition of financing under the Project is the compliance of the sub-borrowers with the following requirements:

 

• Compliance with the legislation of Ukraine and the European Union on environmental protection, published on the EIB website
• Procurement by the borrower must be carried out in compliance with the requirements and rules of the EIB set out in the Procurement Guidelines published on the EIB's website

 

The project does NOT finance the following activities:

 

• production, distribution and trade in gambling equipment
• production, distribution and trade in tobacco products
• activities to attract live animals for experimental and scientific purposes
• activities that lead to negative environmental impacts
• activities that are considered unethical or immoral or that are prohibited by national law
• financial activities
• production, distribution and trade in weapons and small arms, ammunition, military or police equipment
• acquisition of licenses, quotas, production rights and other rights granted by government agencies
• acquisition of land, unless it is technically necessary for investment
• acquisition of farmland
• acquisition of enterprises
• construction, restoration, purchase of real estate, including for resale / lease

            MTB BANK has been actively developing lending to farmers for several years in a row thanks to developed partnership programs. And now the bank's customers will be able to finance for a long time - up to ten years at reduced interest rates.

            Thanks to the participation of the European Investment Bank, the bank's clients will receive financial advantages. MTB BANK will provide financial advantage to the Final Beneficiaries, which will be reflected in a favorable interest rate. Such financial benefit will be at least 100 basis points (representing 1% per annum) compared to the annual interest rate that MTB BANK would apply to such loans without the participation of the European Investment Bank.

More information can be obtained by contacting:

Dmytro Vyacheslavovych Iozhitsa

Head of the department for development and implementation of products of the Department of sales and attraction of corporate clients of PJSC "MTB BANK"
tel. 1217
(048) 775 97 00
098 838 18 17
066 534 28 82
DIozhitsya@mtb.ua
Odessa, Polsky Uzviz, 11, room 319

ONagorskaya@mtb.ua

Reference:

The European Investment Bank (EIB) is an international financial organization (IFI) whose shareholders are the member states of the European Union (EU). The bank was established in 1958, in accordance with Article 308 of the Treaty on the Functioning of the European Union. The EIB, together with local financial institutions, is involved in financing programs and investment projects that contribute to the development of the country where they are implemented and to the achievement of EU policy goals.

PJSC MTB BANK has been operating in the financial market of Ukraine since 1993, has more than 50 branches in 12 regions of Ukraine.

 * EIB’s Guide to Procurement - link

EIB’s Environmental and Social Standards - link