Megabank raises EUR 5 million in foreign funding for SMEs
Megabank (Kharkiv) attracted long-term loan financing from the BlueOrchard Microfinance Fund (BOMF) managed by Swiss-based impact investment manager BlueOrchard Finance Ltd.
The amount of the credit line is 5 million euros, the term of the loan agreement is three years. The agreement was signed on May 14th. Megabank uses the received funds for lending to small and medium-sized businesses from various sectors of the economy.
“It is very important to emphasize that the obtained funds are long-term. We will be able to offer our clients investment loans – i.e. for the purchase of equipment, and so on, and there are lack of such offers on the market now. By attracting this foreign loan, Megabank adheres to its targeted program for the development of small and medium-sized businesses: our strategic task is to continue to lend to micro, small and medium businesses and thus support the real sector of the Ukrainian economy”, said Oleksiy Yatsenko, the Chairman of the Management Board of Megabank.
Reference. BlueOrchard Finance Ltd is a leading global impact investment manager, dedicated to fostering inclusive and climate-smart growth. BlueOrchard was founded in 2001, by initiative of the UN, as the world’s first commercial manager of microfinance debt investments. Today BlueOrchard provides institutions in emerging and frontier markets with debt and equity financing and investors around the world with premium investment solutions, including credit, private equity, and sustainable infrastructure.
With a major global presence and offices on four continents, BlueOrchard has invested to date more than USD 6 billion across 80 emerging and frontier markets, enabling tangible social and environmental impact.
MEGABANK has been working in Ukraine for 28 years. The bank serves about 600 thousand clients in 167 branches in Ukraine. The bank’s shareholders include the large foreign financial institutions, such as European Bank for Reconstruction and Development, German State Bank KfW, International Financial Corporation.
Since 2007, Megabank has signed 49 agreements with 17 foreign partners on attracting funds in the form of capital, subordinated debt, loans and deposits for 356 million US dollars total.
At the expense of foreign financing, the bank provided more than 6 thousand loans to Ukrainian enterprises in the real sector of the economy, for about 500 million dollars total. The significant part of them was provided to micro, small and medium-sized enterprises in the agricultural sector, and also aimed at financing energy efficiency projects, development of the export potential of bank customers and so on.
As of May 14, 2019, Megabank is implementing 12 long-term programs of 9 foreign investors from 6 countries of the world for a total amount of 91 million US dollars, majority of which are aimed at financial support of micro, small and medium-sized businesses.