The European Bank of Reconstruction and Development (EBRD) is a multilateral development bank that promotes economic development of the private sector in over 30 economies, with a focus on social impact, climate finance and supporting the reconstruction of Ukraine’s real economy. Since its creation in 1991, the EBRD has invested over €210 billion in more than 7,400 projects across three continents to support the transition towards private sector and entrepreneurial initiatives.
Given Citi’s close relationship with EBRD it came into discussions that they were in need of local Ukrainian currency to finance local SMEs liquidity, working capital and trade-finance needs, which then marked the start of facility discussions and negotiations.
The revolving credit facility (RCF) provides the EBRD access to hryvnia liquidity for local-currency loans. The solution was tailored to recognize specific EBRD Privileges and Immunities, strong credit rating as well as local regulation and a need for a flexible structure to accommodate EBRD’s local currency requirements in terms of tenor, amounts, repayment schedules etc.
On 7th of February 2025, Citi signed a second RCF Facility agreement for $100mn denominated in UAH. The facility will allow EBRD to continue its social impact and reconstruction efforts on-the-ground in Ukraine. The transaction is part of Citi’s PSG Direct Local Currency Financing Solutions for development finance institutions. Through this initiative, Citi aims to facilitate capital mobilisation in local currencies to deliver financial stability by reducing risk, aligning with responsible banking practices and empowering local borrowers to navigate their financial obligations with greater confidence.