KIEV, UKRAINE — The EBRD and Raiffeisen Bank Aval (RBA) are supporting the development of Ukraine’s agribusiness with a joint transaction. RBA is providing up to an S$8.5 million loan to Krolevets Feed Factory (KFF), while half of the risk on the loan will be shared by the EBRD under a Risk Sharing Facility signed between the financial institutions.

KFF will invest the funds in the acquisition of more than 100 grain hoppers, 13 new trucks with trailers and specialized equipment to improve the company’s operational efficiency and diversify its logistics operations. The funding also will facilitate the upgrade of the existing fleet of vehicles used for crop transportation.

Under the Risk Sharing Facility program the EBRD will share the risk on individual loans made by Raiffeisen Bank Aval to businesses in the total amount of up to €20 million over a period of three years. The RSF will help increase the size and tenor of loans to businesses across the country.

Since the start of EBRD’s operations in Ukraine in 1993, the bank has made a cumulative commitment of almost €14.6 billion through 445 projects in the country.

Raiffeisen Bank Aval was founded in 1992. Since October 2005, it has been part of the Austrian banking group Raiffeisen Bank International AG. Raiffeisen Bank Aval offers a wide range of services to more than 2.5 million clients through its nationwide network.