EBRD and EU provide € 25 million investment to Credit Agricole to support businesses in Ukraine

Tuesday, May 11, 2021
EBRD and EU provide € 25 million investment to Credit Agricole to support businesses in Ukraine

EBRD investment of € 25 million will be used to expand the leasing activities of Credit Agricole in Ukraine

The European Bank for Reconstruction and Development is providing a € 25 million investment to Credit Agricole Bank (Ukraine) to improve the competitiveness of micro, small and medium-sized enterprises (MSMEs) in the country. The investment is accompanied by grant funding from the European Union (EU) under the EU4Business initiative.

The new financing will allow the bank to expand its range of leasing solutions for MSMEs, thanks to which these companies will be able to invest in the modernization of machinery, equipment, and technologies to European quality, safety, labor, and environmental standards. At least 70 percent of the investment is planned to be used to finance green technologies in accordance with the EBRD's Green Economy Transition (GET) approach.

In addition to long-term financing, lessees will receive grant support from the EU in the form of investment incentives to be paid after the completion of their modernization projects.

Credit Agricole has been operating in Ukraine since 1993 and offers a full range of banking services in this country. In particular, the bank is one of the leaders in the vehicle leasing sector and a strategic partner of agro-industrial companies.

“Credit Agricole has been a long-standing reliable partner of the EBRD and I welcome the new stage in the development of our relationship. Together, we will support business representatives and help them modernize their fleet of equipment, increase their competitiveness in the domestic market and expand export opportunities. For this, Credit Agricole has an effective instrument - financial leasing, which is rapidly gaining popularity among our clients. And thanks to the Program, leasing equipment becomes even more affordable and financially profitable, ”said Carlos de Cordu, Chairman of the Board of Credit Agricole Bank.

Ukraine is one of the three countries with the largest volumes of EBRD investments In the last 2 years alone, the Bank has committed itself to provide € 2 billion for the Ukrainian economy. Financing small businesses (directly or through financial institutions) is one of the priority areas of the EBRD's activities in Ukraine.

The EBRD also finances projects related to infrastructure, energy efficiency, energy security, and industry. Investments are combined with support in areas such as fighting corruption, ensuring effective governance of state-owned enterprises, implementing structural reforms, and creating a more transparent business environment.

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