Raiffeisen Bank, together with the company «Eridon», has signed an agreement to launch a financing programme for agricultural producers in Ukraine. Farmers will be able to purchase seed, fertilisers and crop protection products at preferential rates from 0,01% per annum.
Financing programmes
Under the partnership, agricultural enterprises have access to two financing programmes. The programmes are intended for the purchase of seed, fertilisers and crop protection products with a preferential interest-rate period.
After the end of the preferential period, interest rates apply in line with the bank’s terms. Final conditions and the available credit limit are determined individually following the client’s assessment.
Rates and lending terms
The initial preferential rate starts from 0,01% per annum for the purchase of the specified resources. The favourable terms allow farmers to secure the necessary materials for the upcoming agricultural season in advance.
After the preferential period the bank applies standard interest terms, and lending limits are determined individually. Final parameters depend on the results of each client’s assessment.
Comments from representatives
«The partnership with „Eridon“ opens agricultural producers access to a wide assortment of products from over 16 brands, and financing from Raiffeisen Bank helps provide farms with the necessary resources without a significant simultaneous burden on working capital. Thanks to the synergy of the leading brands of Raiffeisen Bank and Eridon, we expect a rapid start driven by strong customer interest in the joint partnership programme»
— Olena Kaplina, Head of Corporate Projects Development and Partnerships
«The future harvest begins long before the first grain is in the ground — with the decisions a farmer can finance. In conditions of war and increased risks for the agricultural sector, the availability and cost of capital take on particular importance: they determine investment in the next season and the financial resilience of the farm. In partnership with „Eridon“ we help farmers acquire the necessary resources on preferential terms and preserve working capital for ongoing operations. For us, this is the essence of partnership: to give the producer financial support so that even amid high uncertainty they can plan and continue working»
— Ruslan Spivak, Director for Institutional Clients, Investment Banking and Corporate Strategy at Raiffeisen Bank
About the partners
The bank continues to expand financing opportunities for Ukrainian agribusiness, supporting enterprises in preparing for the sowing campaign and ensuring business continuity.
The company «Eridon» has been operating in the agricultural market since 1993 and specialises in supplying farmers with seed, fertilisers, crop protection products and agrotechnical solutions.
