Raiffeisen and ECA insured risks related to nearly UAH 500 million in financing for a Ukrainian furniture manufacturer
Raiffeisen Bank and PJSC Export Credit Agency (ECA) signed a package of six credit insurance agreements covering financing provided to a Ukrainian furniture manufacturer. The total amount of financing is nearly UAH 496 million, while the aggregate insured amount under the ECA agreements exceeds UAH 464 million.
According to ECA, this is the largest credit insurance transaction by volume in the Agency’s history.
The financing covers two areas. Nearly half of the funds were provided by Raiffeisen Bank to support the production and supply of furniture and components under export contracts, while the other half is intended for the development of production capacities and the necessary infrastructure.
Raiffeisen Bank provided financing to the Ukrainian manufacturer, while ECA insured the majority of this financing. For export loans, the insurance coverage applies to the risk of non-repayment of the principal, while for investment loans it also covers certain war and political risks specified in the respective agreements.
In particular, the insurance coverage for investment loans extends to risks related to armed aggression and hostilities, terrorist acts and sabotage, occupation or annexation, compulsory seizure of property, as well as other events specified in the agreements.
“For Ukrainian manufacturers, access to financing today is closely linked to effective risk management. Together with ECA, we have developed a comprehensive solution combining export and investment financing. It provides the company with the resources needed to fulfil international contracts, develop production and invest in infrastructure. This is support not only for an individual company, but also for Ukraine’s processing industry, jobs and the country’s export potential,” said Oleksandra Prokhorchuk, Director of the Mid-Market Corporate Banking Department at Raiffeisen Bank.
“This project demonstrates how ECA instruments can transform insurance coverage into a tangible resource for the development of Ukrainian manufacturing. Credit insurance enables banks to more actively finance both the execution of export contracts and investment projects that contribute to expanding production capacities and strengthening Ukraine’s export potential. This is how a modern system of state support for non-commodity exports works – through partnership between the state, the banking sector and business,” said Ruslan Hashev, Chairman of the Management Board of the Export Credit Agency.
