Oschadbank funds $9.6 million to rebuild major Ukrainian company razed by Russian attacks

The state-owned Oschadbank has opened a credit line of 360 million hryvnias ($9.6 million) for the reconstruction of a processing enterprise destroyed by the Russians, the bank's website says.

The name of the borrower is withheld for security reasons. The bank only said that it is a leading exporter and one of the leaders of Ukraine in the field of food production.

Financial support was provided through the state program "Affordable loans 5-7-9%" and the state guarantee program.

"In order to reduce the cost of the company's investments, we combined several financial products. This approach is of particular importance in this project, especially, given the lack of collateral due to destroyed production facilities. The company will receive working capital, which will enable it to resume production and reach pre-war sales volumes, which before the full-scale war had a significant market share in Europe and in the world," said Yuriy Katsion, deputy chairman of the board of Oschadbank.

This is the second large loan of Oschadbank for the processing industry in the last month.

In December, the bank signed a loan agreement with Astarta for $60 million for the construction of a plant for advanced processing of soybeans and production of soy protein concentrate.

In December 2023, the Cabinet of Ministers, in agreement with the International Monetary Fund, decided to focus the provision of financial state support under the "5-7-9%" programs exclusively on micro, small and medium-sized enterprises. Large businesses will gradually be excluded from the program.