Raiffeisen Bank has secured international guarantees to finance Ukrainian enterprises in 2022-2026 totaling up to €1,64 bn, of which €830 mln has already been used to support more than 3,5 thousand clients.
Volume of guarantees and partners
The agreements concluded in 2022−2026 cover a loan portfolio of up to €1,64 bn. Of this amount €830 mln has already been directed to finance more than 3,5 thousand clients.
Among the bank’s international partners are the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the European Investment Fund, the International Finance Corporation (IFC), the United States International Development Finance Corporation (DFC) and the Multilateral Investment Guarantee Agency (MIGA).
Mechanisms supporting recovery and “green” investment
International guarantees enable the bank to finance enterprises that, due to loss of property, asset damage or relocation, do not always meet traditional lending criteria. In a number of programmes guarantees also relax collateral requirements.
The bank has already paid out more than €4,5 mln in incentive payments to clients implementing “green” projects. The text also mentions the need for longer loan terms, more accessible insurance and financing for urgent repairs prior to receiving compensation.
Pilot programmes and the bank’s role
One of the instruments is the pilot Enterprise Security Enhancement programme with the participation of the EBRD, which envisages €1,2 mln in donor funding for partial debt repayment on investment loans in the event of confirmed direct war-related damage to assets.
“We measure the effectiveness of financing during wartime primarily by the opportunities it opens up for business. A company cannot plan a five-year investment if it only has access to two-year financing. Likewise, it is impossible to invest in recovery without understanding how assets will be protected and financial obligations regulated in the event of repeated war losses. That is why our task is to create comprehensive financial solutions, combining lending, international guarantees, insurance and, if necessary, the involvement of investors in capital. When risks are shared among all participants, business gains the ability to make long-term investment decisions even during war,” said Natalia Hurina, Chair of the Management Board of Raiffeisen Bank.
The bank positions its role as bringing together the resources of international financial institutions, donors, insurers and investors around the specific needs of enterprises, in particular for the reconstruction and modernisation of assets.
