Unsecured loans for energy efficiency: UKRGASBANK and UNIDO presented the operation of the Loan Guarantee Fund

UKRGASBANK and the United Nations Industrial Development Organization (UNIDO) presented the launch of the Loan Guarantee Fund to facilitate the development of industrial energy efficiency in Ukraine. This is the first guarantee based financial mechanism in Ukraine to improve financing conditions for industrial energy efficiency (IEE).

The program allows the companies to get an unsecured loan at a reduced rate, as well as benefit from energy savings of up to 25%. Such loans will be given the priority by the technical office of UKRGASBANK.

"It is not a secret that Ukraine is one of the most energy-intensive countries in the world. And this fund is aimed specifically at helping the Ukrainian businesses to become modern, energy efficient and competitive in the international market and furthermore environmentally friendly. This is a pilot project for both UKRGASBANK and UNIDO, and thus it has some limitations. The maximum loan amount is up to USD 150,000. But this amount is sufficient to implement energy management system at an industrial enterprise. It should also be noted that all such projects have a short payback period," said Viktor Duma, Deputy Head of External Relations Department of UKRGASBANK.

Who might be interested in such funding? These are manufacturing enterprises, food and processing industry enterprises, export-oriented companies, or those that plan to attract loans from international financial institutions, enterprises of energy-intensive industries, etc.

According to Serhii Porovskyy, an Energy Efficiency Financing and Policy Expert at UNIDO / GEF UKR IEE Project, energy management system is the most effective tool allowing companies to understand the potential and feasibility of further energy efficiency investments. "Investing in industrial energy efficiency measures is eligible and lucrative providing the implementation of energy management system, which we advise as the first step. However, currently we are stepping up efforts so that the advantages of the industrial energy efficiency financing will be comprehensible for industrial enterprises, as well as for financial and state institutions. It is extremely necessary to reduce the energy intensity of Ukraine's economy and improve its development," Serhii Porovskyy pointed out.

The event was attended by representatives of UKRGASBANK and the United Nations Industrial Development Organization (UNIDO), representatives of line ministries, as well as entrepreneurs participating in the UKRIEE UNIDO / GEF Project, who have already benefited from the implementation of energy management system. Participants shared practical experience and benefits from implementation of energy management system and energy efficiency investments.

The full version of the presentation can be viewed here.

The detailed information about lending terms and conditions can be found here.

26.11.2020