EBRD to provide guarantee to Ukreximbank for new energy loans worth EUR 100 mln

The European Bank for Reconstruction and Development (EBRD) will provide a guarantee to state-owned Ukreximbank through the Energy Security Support Facility (ESSF). This guarantee will partially cover the credit risk on new loans for Ukrainian businesses to implement various energy projects, up to a total amount of EUR 100 million.

"The Project is provided… to finance energy generation, energy storage and energy efficiency sub-projects, including GET-eligible sub-projects (70% of the facility), to Ukrainian private businesses, state-owned enterprises (SOEs), municipalities and municipal companies," the EBRD reports on its website.

Its Board of Directors approved the relevant project on September 9, it will cover up to 50% of the credit risk.

According to the published information, the guarantee is provided in two equal tranches, the second of which is unreserved.

It is noted that Ukreximbank will also receive technical assistance under the ESSF program.

The EBRD materials also state that up to 20% of the guaranteed sub-loans will be used to finance long-term investments of small and medium-sized enterprises within the EBRD-EU4Business Credit Line with incentives.

Ukreximbank is the third bank in Ukraine in terms of total assets as of the middle of this year - UAH 318.6 billion (8.3% of the total assets of the system).

As reported, on September 9 this year, the EBRD also approved the provision of a guarantee to Ukreximbank for new loans in other areas for EUR 100 million, which covers up to 50% of the credit risk.