ProCredit Holding AG & Co. KGaA: Agreement with the Multilateral Investment Guarantee Agency (MIGA) expanded to further support the business activities of ProCredit Bank Ukraine

ProCredit Holding AG & Co. KGaA: Agreement with the Multilateral Investment Guarantee Agency (MIGA) expanded to further support the business activities of ProCredit Bank Ukraine

Frankfurt am Main, 21. June 2023 – ProCredit Holding AG & Co KGaA (ProCredit Holding), the parent company of the development-oriented ProCredit group, today announced that the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA) has significantly increased a guarantee for ProCredit Holding which has been in place since 2020.

The guarantee covers ProCredit Holding’s equity investments in its subsidiary, ProCredit Bank JSC, Ukraine (ProCredit Ukraine), against the risk of expropriation of the mandatory minimum reserve held at the country’s central bank. The existing guarantee has been increased from EUR 17.1 million to EUR 40.85 million; its duration is unchanged and will continue to apply until December 2025.

“The MIGA guarantee increase is another example of the excellent collaboration between MIGA and the ProCredit group, which is based on shared principles and values,” said Hubert Spechtenhauser, Chair of the Management Board of ProCredit General Partner AG. “The top-up to the MIGA guarantee is an important signal for us in terms of international support and is recognition of the performance and strength of our Ukrainian bank. It will support our operations in Ukraine and we see ourselves very well positioned to continue working with our clients now as well as during the reconstruction of the country.”

Since the beginning of the war, ProCredit Bank Ukraine has consistently maintained operational banking activities in a very challenging environment.

The MIGA guarantee reduces the risk weight of the mandatory reserve that has to be held at the National Bank of Ukraine by a corresponding amount, thus enabling ProCredit to use the freed-up capital to support its client-related business activities in Ukraine.

The increased MIGA guarantee aligns with the World Bank Group’s response to the crisis in Ukraine. As part of the guarantee, ProCredit has committed to undertake gender training for its staff in Ukraine, making this the first MIGA gender-flagged project in an active conflict area.

The guarantee increase for ProCredit Ukraine is also the first project to tap into the Support for Ukraine’s Reconstruction and Economy (SURE) Trust Fund. The fund was started with a USD 23 million donation from Japan to allow MIGA to provide trade finance guarantees, insurance on bank reserves during the conflict, and political risk insurance to support reconstruction after the war.

Contact:

Andrea Kaufmann, Group Communications, ProCredit Holding, Tel.: +49 69 951 437 138,

E-mail: Andrea.Kaufmann@procredit-group.com

In Washington:

Elizabeth Howton, +1 202 458 5922, ehowton@worldbankgroup.org

For more information, please visit: https://www.miga.org

Stay updated via Twitter: https://twitter.com/MIGA

Follow us on LinkedIn: https://www.linkedin.com/company/wb-miga

About MIGA

MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance; and offering credit enhancement to private investors and lenders.

Since its creation, MIGA has issued over $70 billion in guarantees across 123 developing countries in support of more than 1,000 projects.

About ProCredit Holding AG & Co. KGaA

ProCredit Holding AG & Co. KGaA, based in Frankfurt am Main, Germany, is the parent company of the development-oriented ProCredit group, which consists of commercial banks for small and medium enterprises (SMEs). In addition to its operational focus on South Eastern and Eastern Europe, the ProCredit group is also active in South America and Germany. The company’s shares are traded on the Prime Standard segment of the Frankfurt Stock Exchange. The core shareholders of ProCredit Holding AG & Co. KGaA include the strategic investors Zeitinger Invest and ProCredit Staff Invest (the investment vehicle for ProCredit staff), KfW, the Dutch DOEN Participaties BV and, since very recently, the European Bank for Reconstruction and Development. As the group’s superordinated company according to the German Banking Act and as the parent financial holding company of the ProCredit financial holding group, ProCredit Holding AG & Co. KGaA is supervised on a consolidated level by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) and the German Bundesbank. For additional information, visit : https://www.procredit-holding.com/