AEQUO advises ProCredit Bank on a USD 28 million. Loan portfolio guarantee from DFC to finance SMEs

AEQUO advised ProCredit Bank on obtaining a 10-year loan portfolio guaranty agreement from the U.S. Development International Finance Corporation (DFC) in the amount of USD 28 million to support the financing of small and medium-sized enterprises in Ukraine. The United States Agency for International Development (USAID) co-sponsored the transaction with the DFC. The new guaranty will enable ProCredit Bank to disburse loans of up to USD 56 million in total with a credit risk coverage up to 80%. 

Ukrainian companies will be able to obtain financing from ProCredit Bank to support their business operations and development with less stringent collateral requirements. Financing can be used to replenish working capital as well as to purchase fixed assets. According to the terms of the agreement at least 50 % of financing will be provided by ProCredit Bank to the agricultural sector, which is the driving force behind Ukraine's economy and ensures the stability and development of the domestic market in the face of global challenges.  

“We are grateful to ProCredit Bank, our long-standing client for the trust and long-term successful cooperation, to the DFC and USAID for their financial support of Ukraine and our local businesses during these immensely challenging times”, said Yulia Kyrpa, executive partner of AEQUO.