Ukraine: EFSE partners with PJSC Kredobank by investing in SME-dedicated local-currency bonds


The European Fund for Southeast Europe (EFSE) has provided financing in Ukrainian hryvnia (UAH) equivalent to €10 million to the Lviv-based PJSC Kredobank.  This includes a UAH 250 million (€8.2 million) investment in local bonds issued by the bank, making it the largest non-government bond investment in Ukraine in 2018.

With a strong presence in Western Ukraine, Kredobank stands out as a top provider of micro and small enterprise (MSE) financing with a special focus on serving agricultural businesses. 

The dedicated funding provided by EFSE will enable the bank to offer longer-term financing to MSEs in local currency – a key EU4Business priority – and will support the bank in increasing its outreach nationwide.

EFSE Board Chairman Christoph Tiskens said: “With this inaugural bond investment, we are pleased to further expand our operations in Ukraine with our new partner, Kredobank. Continuing EFSE’s role as successful local currency provider in Ukraine, we are committed to further supporting the economic development of the country while promoting the principles of responsible finance.”

“We are happy to start this cooperation with EFSE and benefit from the dedicated funding that will allow us to expand financing to our core segment of small and medium enterprises, and to offer much-needed longer-term financing in local currency,” says Grzegorz Szatkowski, Chairman of the Board of Kredobank. “It is also worth noting that EFSE’s investment in Kredobank’s bonds is an additional confirmation of the attractiveness of this financial instrument for investors.”

Kredobank will use the proceeds from the bonds to finance small and medium enterprises.

The European Fund for Southeast Europe (EFSE) was initiated by KfW Development Bank (KfW) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission under the EU4Business initiative.

EFSE focuses on assisting local financial sectors in strengthening their ability to ensure adequate and sustainable financing. The funding the EFSE provides as finance primarily for micro and small enterprises (MSEs) – but also for private households in the form of home improvement loans – is channelled to these loan customers through local partner lending institutions.