The European Bank for Reconstruction and Development (EBRD) on 20 October announced an extension of two new unfunded portfolio risk-sharing facilities to Ukreximbank, the State Export-Import Bank of Ukraine. This will enable €200 million in new lending to Ukrainian borrowers amid Russia’s ongoing war on the country.
The EBRD’s guarantees will cover 50 per cent of the credit risk on Ukreximbank’s newly issued sub-loans to private businesses, state-owned enterprises (SOEs) and municipalities. Ukreximbank will lend €100 million to businesses operating in critical industries in Ukraine, while the remaining €100 million will be channelled to businesses, SOEs and municipalities investing in energy generation, energy storage and energy efficiency projects.
Eligible sub-borrowers will also receive EU-funded technical assistance and investment incentives, such as grants on completion of their investment projects under the bloc’s EU4Business initiative. Higher levels of incentive will be provided to businesses affected by the war (such as those experiencing asset destruction, loss or relocation), as well as sub-borrowers, facilitating the reintegration into the workforce of war veterans, people living with disabilities, internally displaced people and/or those located in territories most acutely affected by the war.
The EBRD facilities will be backed by partial first-loss risk cover from France, as well as the EU under its Ukraine Investment Framework.
Since the start of Russia’s full-scale war on Ukraine, the EBRD has enabled close to €3.2 billion of finance for Ukrainian borrowers through 38 similar facilities with 12 partner financial institutions.
