The European Bank for Reconstruction and Development (EBRD) and Piraeus Bank in Ukraine (PBU) are joining forces to support the business development of Tatrafan LLC, a Ukrainian producer of flexible packaging.
PBU is providing a €3.1 million loan, with EBRD sharing the risk at 50% of the loan amount through a Risk Sharing Facility (RSF). Tatrafan will use the financing to increase its production capacity as well as to cover working-capital and capital-expenditure needs.
Tatrafan, located in the western Ukrainian city of Lutsk, manufactures flexible wrapping films, which are used to produce packaging for food and for fast-moving consumer goods. Tatrafan is part of a broader group of companies active in the production of plastic packaging in Bulgaria, Finland and the Slovak Republic.
Piraeus Bank in Ukraine is a subsidiary of the largest financial group in Greece - Piraeus Financial Holdings S.A. and operates in the country since 2007. In Ukraine, Piraeus Bank focuses on serving top-tier SMEs operating in the agriculture, food processing, trade and manufacturing sectors. In early 2020, the EBRD arranged a financing package for PBU, which included a local currency loan of up to US$ 5 million equivalent for on-lending to small businesses and €10 million in funding under the RSF.
The EBRD is theleading institutional investor in Ukraine. To date, the Bank has invested more than €15.5 billion in 507 projects across the country, with a focus on assisting economic stabilisation, anchoring reforms, strengthening energy efficiency and energy security, and supporting agricultural and industrial projects as well as smaller businesses.
21 August 2023
21 August 2023