Ukraines' Oschadbank has reported a significant increase in the volume of trade finance transactions over the year to June 2024 for large corporate clients under the European Bank of Reconstruction and Development's (EBRD's) Trade Facilitation Programme (TFP).

The TFP covers all types of trade finance instruments, including letters of credit (L/Cs), standby L/Cs, counter-guarantees, promissory notes, bills of exchange, irrevocable reimbursement undertakings, bid bonds and performance bonds.

Largest trade finance transaction

Oschadbank's significant increase in TFP-backed transactions was partially facilitated by the bank's largest trade finance transaction of the year.

It was implemented in late June jointly with the EBRD and Switzerland's Banque de Commerce et de Placements (BCP).

Structured finance

Oschadbank provided structured trade finance in the amount of US$15 million for a period of 3 years to one of its large corporate clients which the bank declined to name.

Three L/Cs with post-import financing were issued for the entire amount of the pre-approved credit limit, according to a statement issued by the bank.

Fourfold TFP increase

Between June 2023 and June 2024, the volume of trade finance transactions for large corporate clients carried out by Oschadbank under the TFP increased almost fourfold according to the bank.

"Trade finance is one of the focus products that Oschad offers to large corporate business clients focused on export-import operations," says deputy chairman of the management board of Oschadbank, Yuriy Katsion.

He says that the bank's entire trade finance portfolio has increased by more than 1.6 times since the beginning of 2024.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.