The attraction of debt from EBRD is possible only if the business meets the required criteria. In course of negotiations the company changes, the level of corporate governance increases. Not every Ukrainian business is ready for such challenge. But if EBRD becomes the creditor, it testifies that the company has transparent business model. What are the benefits of obtaining a loan from EBRD?
First of all, a properly structured investment project makes it possible to obtain lower effective interest rate than market rates, and for a longer period. EBRD usually provides loans with an interest rate close to the lowest market rate. For example, if market rate for loan in USD is in the range 5-9%, EBRD rate is likely to be 5-5.5%. However, this rate could be further reduced. In our case with logistics operator, part of the loan in the amount of $1.8m, was granted under the Green Logistics Program (GLP), which aims to implement the best practices in reducing carbon and counteraction energy inefficiency. For participants of such affiliate program interest rate for the abovementioned part of loan was 1-1.5%.