A letter of credit (L/C) transaction managed by Ukraine's state-owned Ukrgasbank has won the Deal of the Year (Green Trade) awarded by the European Bank for Reconstruction and Development (EBRD).

The EBRD's Trade Facilitation Programme (TFP) meanwhile has won Global Trade Review's Best Deal of 2022 Award for a deal that also features Ukrgasbank, as well as ING Bank.

L/C for power and heat

Ukrgasbank was awarded by EBRD for a December 2022 deal in which the Ukrainian bank issued an L/C with the development bank's support "in a matter of days" for the purchase of biogas plant equipment for a leading Ukrainian agricultural enterprise from a Danish manufacturer. The plant will produce electricity and heat, with construction expected to be completed by the end of this year.

The Ukranian bank was also recognised by the EBRD as the Most Active Issuing Bank under the TFP, which provide guarantees to international commercial banks and covers all types of trade finance instruments, including L/Cs, standby L/Cs, counter-guarantees, promissory notes, bills of exchange, bid bonds and performance bonds.

Ukrgasbank, ING and EBRD

The TFP meanwhile has won Best Deal of 2022 Award while EBRD secured the Best Development Bank in Trade 2022 Award in Global Trade Review's most recent awards.

In May 2022, the EBRD rolled over a EUR 4 million (US$4.3 million) guarantee, allowing LLC Technotorg, a key distributor of agricultural machinery in Ukraine, to continue importing goods into the country.

The guarantee was issued in favour of ING Bank, the confirming bank, in support of Ukrgasbank, the issuing bank, covering 100 per cent of the political and commercial payment risk of the issuing bank.

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