Agroprosperis Bank: Supporting Ukraine's farmers with financial services
Sector: Financing for SME Agriculture
Challenge: Ukraine is often referred to as the breadbasket of Europe. But while agriculture represents a significant share of the country’s GDP, many of the country’s farmers are small and lack the resources needed to increase yields. These small farms are typically not served by traditional commercial banks, which have strict collateral requirements.
There are approximately 14,000 small and medium, or SME farmers in Ukraine, who collectively cultivate about one-third of the arable land but lack access to an estimated $8.7 billion in financing to support existing operations and invest for the future.
How OPIC helped: OPIC committed $10 million in financing to PJSC Agroprosperis Bank (AP Bank) to support expanded lending to SME farmers in Ukraine to cover the purchase of seeds, spare parts and fuel for machinery used in planting and harvesting. By offering innovative financing that enables SME farmers to use crop receipts for collateral, the bank will ease the challenges that small farms often face obtaining loans.
Impact: By expanding the availability of financing to small and medium agribusinesses, the project will help grow a key sector of Ukraine’s economy while helping the country’s small farmers increase yields and generate revenues for future growth. The project also provides for technical assistance for borrowers, and access to certain financial products.
This project was profiled in 2017