EFSE Expands Cooperation with ProCredit Bank Ukraine by Providing Funding in Local Currency for Agriculture

Date: 
20 Oct 2017

The European Fund for Southeast Europe (EFSE) is expanding partnership with ProCredit Bank Ukraine by providing a new local currency loan in the amount of USD 10 million equivalent in Ukrainian hryvnia (UAH). Notably, this is the first UAH-denominated facility in Ukraine, which was hedged with the Amsterdam-based Currency Exchange Fund (TCX), and thus a market-enabling transaction that opens the door for donors, investors and other external lenders to provide hedged funding in the much needed local currency in Ukraine.

The new facility will support ProCredit Bank Ukraine to increase its outreach and scale with small and medium enterprises (SMEs) in rural areas with a focus on farmers and agricultural businesses. This transaction continues the successful cooperation between EFSE and ProCredit Bank, which started in 2015 and has facilitated an investment of more than EUR 50 million equivalent in over 700 local currency loans to SMEs in Ukraine to date.

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Country: 
Ukraine