Ukrgasbank and PrivatBank Join EBRD’s €700 Million Energy Security Initiative in Ukraine

Ukrgasbank and PrivatBank Join EBRD’s €700 Million Energy Security Initiative in Ukraine

(IN BRIEF) Ukrgasbank and PrivatBank are the first two Ukrainian banks to join the European Bank for Reconstruction and Development’s (EBRD) Energy Security Support Facility (ESSF), unlocking €700 million in loans for energy security projects. The EBRD will provide risk-sharing facilities of €150 million to Ukrgasbank and €175 million to PrivatBank, supporting financing for decentralised energy generation, energy storage, and energy efficiency. This initiative aims to bolster Ukraine’s energy resilience amid ongoing infrastructure attacks, with loans available to SMEs, municipalities, and households for crucial energy investments.

(PRESS RELEASE) LONDON, 12-Sep-2024 — /EuropaWire/ — Ukrgasbank and PrivatBank are the first two Ukrainian banks to join the European Bank for Reconstruction and Development’s (EBRD) new Energy Security Support Facility (ESSF). This program aims to enhance Ukraine’s energy resilience by enabling access to €700 million in loans for decentralised energy generation, energy storage, and energy efficiency projects.

The EBRD is extending €150 million to Ukrgasbank and €175 million to PrivatBank through portfolio-risk-sharing facilities, which will allow the banks to offer financing to small and medium-sized enterprises (SMEs), regional municipalities, and private households for crucial energy projects. This effort is in response to the energy crisis exacerbated by Russian attacks on Ukraine’s energy infrastructure, which have resulted in a loss of over 9,000 MW of energy-generating capacity.

The ESSF will provide risk-sharing support to partner banks, enabling more resilient energy solutions while reducing exposure to infrastructure attacks. Since the beginning of the war, the EBRD has provided over €1 billion in support to Ukraine’s energy sector, and it has committed an additional €300 million for decentralised energy projects.

As major players in Ukraine’s banking sector, Ukrgasbank and PrivatBank will play a vital role in helping businesses and households secure much-needed energy solutions, ensuring Ukraine’s continued economic resilience amid ongoing challenges.

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SOURCE: EBRD