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Eng
31 August 2020

EBRD and Raiffeisen Bank Aval support Ukrainian LPG retailer

  • UAH 440 million loan from Raiffeisen Bank Aval supported by EBRD’s Risk Sharing Facility
  • Financing of working capital needs 
  • Project supports a niche fuel distributor serving mainly small and medium enterprises

The European Bank for Reconstruction and Development (EBRD) and Raiffeisen Bank Aval (RBA) are supporting the operations of Nadezhda, a Ukrainian wholesale and retail distributor of liquefied petroleum gas and petroleum products.

In a joint transaction RBA is providing a loan of up to UAH 440 million (€15 million equivalent) to Nadezhda the Poltava-headquartered company, while up to 60 per cent of the risk on the loan will be shared by the EBRD under a Risk Sharing Facility signed between the financial institutions.

The funds will allow Nadezhda to restructure its balance sheet and finance working capital needs, which will help the retailer cope with the impact of the pandemic on its operations.

Nadezhda is based in Poltava, a city in central Ukraine, and mainly serves small and medium-sized enterprises in the agribusiness sector through a network of fuelling stations across the country.

Under the Risk Sharing Facility programme signed in 2018, the EBRD will share the risk on individual loans made by Raiffeisen Bank Aval to businesses for up to €20 million over a period of three years.

The EBRD is the largest international financial investor in Ukraine. To date, the Bank has made a cumulative commitment of almost €15 billion through 466 projects in the country.

The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 38 economies across three continents. The Bank is owned by 66 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, resilient and integratedFollow the EBRD on the web, Facebook, LinkedIn, Instagram, Twitter and YouTube.

Raiffeisen Bank Aval JSC was founded on 27 March 1992. Since October 2005, the bank has become part of the Austrian banking group Raiffeisen Bank International AG. As at 30 June 2020, Raiffeisen Group owned 68.28 per cent of the shares of the bank, and the European Bank for Reconstruction and Development hold 30 per cent of the bank’s stock. Raiffeisen Bank Aval offers a wide range of banking services to 2.5 million clients through its nation-wide regional network of about 453 branches all around Ukraine.