Credit Agricole Ukraine Signs a $1.03 million Co-Investment Agreement with the USAID IBR Activity

Credit Agricole Ukraine signed a $1.03 million co-investment agreement with the USAID Investment for Business Resilience (IBR) Activity. This partnership will focus on expanding access to financial leasing services for small, and medium-sized enterprises (SMEs) across Ukraine. Leasing is an important financial instrument for SMEs so they can buy or upgrade essential equipment, machinery, or other assets needed to grow and operate their businesses. This blended financial product will be operational through March 2026 and all lease agreements supported by this investment are expected to be signed within 1.5 years.

According to the terms and conditions of the program, the Credit Agricole Ukraine leasing clients will receive a cashback of $5,000 or 10 to 15 percent of the financing amount, depending on the type of asset leased. All cashbacks that the Banks` clients receive under this program will be covered by the USAID Co-investment Agreement.

“The bank has been operating in the Ukrainian market for 31 years, and our mission has always been to attract foreign capital to Ukraine, thus supporting our clients, businesses, and the Ukrainian economy. This cooperation with USAID means more financial support for the agricultural sector, one of the key sectors for Ukraine and world food security,” said Vitalii Kucher, Member of the Management Board, Chief Financial Officer, Credit Agricole Ukraine.

“By partnering with the USAID IBR Activity, we will expand leasing financial services to meet the needs of SMEs for new vehicles, equipment, and machinery to renew their production facilities and improve their businesses. Thanks to the reduced financial burden, the clients covered by the program will have the opportunity to obtain financing in larger amounts,” said Alexandre Tchesnakoff, Member of the Management Board, Credit Agricole Ukraine.

The cashback on the financing of leased equipment will reimburse SMEs for the interest they paid on their loans, hence reducing their financing cost and improving affordability -- a  benefit critical to the financially vulnerable segment of small and medium-sized businesses.

“The USAID IBR’s primary goal is to expand access to finance for small and medium-sized Ukrainian enterprises. We accomplish this through developing new financial products and reducing financial intermediaries’ fees and interest rates for their clientele utilizing USAID co-investment facilities. In addition to leasing programs, we have established factoring, and bank loans with affordable interest rates in our portfolio that are intended, first, for businesses critical for restoring Ukraine’s economy that have been affected by the war. Female-run or owned businesses are strongly encouraged to explore our financial services”, highlighted Rafael Jabba, Chief of Party, USAID Investment for Business Resilience Activity.

Eligible businesses with an annual revenue of up to EUR 50 million ($55 million) can receive cashback as follows:

• Fixed cashback of $5,000 for SMEs purchasing vehicles for business purposes
• Cashback of 10% of the financing, (up to $20,000) for SMEs purchasing customized equipment
• Cashback of 15% of the financing (up to $25,000) for SMEs purchasing agricultural machinery

About Credit Agricole Ukraine

Credit Agricole Bank is one of the oldest foreign banks operating in Ukraine and providing an extensive range of banking services. As part of the global Credit Agricole Group, headquartered in France and ranked among the top 10 largest banks worldwide by assets according to The Banker 2024 ratings, Credit Agricole Ukraine maintains a significant presence in Ukraine. The bank's Ukrainian headquarters are in Kyiv, and it operates 139 branches, serving over 400,000 customers.

Credit Agricole Bank supports Ukraine's economy by financing critical industries. Since the beginning of the war, the bank has issued loans totaling UAH 3.8 billion (approximately USD 74 million) to agricultural sector companies under the Affordable Loans 5-7-9% government program. Additionally, the bank participates in the Government Guarantee Program and has provided approximately UAH 1.3 billion (est. USD 36 million) in credit funds by the end of 2023.

The bank is actively involved in fostering international cooperation. In 2023, amidst the ongoing war, Credit Agricole Ukraine entered into important risk-sharing agreements with the EBRD and IFC, amounting to EUR 50 million and EUR 40 million respectively, to support Ukraine's critical business sectors, particularly agriculture. Generally, the bank is especially active in two areas in Ukraine: lending to the agricultural sector (corporate segment) and car lending (retail segment).

In the war time, the bank allocated more than UAH 144 million towards the purchase of medical equipment for Ukrainian hospitals.

About USAID Investment for Business Resilience Activity

The USAID Investment for Business Resilience Activity (IBR) is a five-year program implemented by DAI Global LLC that supports systemic changes in Ukraine’s economy and increases the supply of finance available to Ukrainian businesses. IBR aims to transform the country’s financial sector into a well-functioning and competitive market that is aligned with European Union standards and integrated into international financial systems, while directly providing financing to enterprises for sustained economic growth in Ukraine.

For additional information about the USAID IBR project, please visit its Facebook page at: https://www.facebook.com/IBRUAproject