Aequo has acted for Raiffeisen Bank International AG (RBI) on the extension of ECA-covered finance in the amount of approximately EUR 4 million for EpiCentr Group, the leading Ukrainian DIY retailer.
Within the long-term co-operation of RBI with EpiCentr Group, the Austrian bank has granted a five-year facility to Epicentr-K LLC to increase the agrarian fleet of the agricultural division of the Ukrainian company. The total value of the transaction is approximately EUR 4 million.
This facility is covered by an export guarantee issued by Euler Hermes Aktiengesellschaft, which served as the export credit agency (ECA). The facility’s interest rate is fixed at the level of the EURIBOR six months plus margin.
Aequo's lawyers assisted RBI in strategy determination of the transaction structure, revising and negotiating the facility agreement and other transaction documentation, and issued a legal opinion in favour of RBI.
The financing was intended to purchase 100 modern semi-trailers from Schmitz Cargobull, a well-known German manufacturer, and improve the operational effectiveness of Epicentr-K LLC.
Within this transaction, the first 20 units of Schmitz trailers obtained customs clearance in August 2019, with the transaction fully completed by the end of 2019.
“We are happy to have assisted RBI with this important transaction, which demonstrates a positive trend of increasing attention, support and trust of international banks to Ukrainian business,’’ commented Yulia Kyrpa.
RBI operates a banking network in Central and Eastern Europe, where 13 markets of the region are covered by subsidiary banks. Additionally, the group comprises numerous other financial service providers in leasing, asset management, and mergers and acquisitions.
RBI is Austria's second-largest bank, with a balance sheet total of €146 billion. It has approximately 47,000 employees and services 16.4 million customers through more than 2,100 business outlets.
Since 2016, agricultural activity has been one of the most important potential directions developed by Epicentr-K LLC. The Agricultural division of Epicentr-K company group cultivates thousands of hectares in different regions of Ukraine.