UKRGASBANK to finance SME energy-efficient projects for the total of EUR 4 million under the Add Energy to Your Business Program

On April 6, the presentation of the Add Energy to Your Business Program took place within the framework of the Refinancing Energy-Efficient Investments of Ukrainian SMEs via Financial Sector Project. The project is financed by the German Government through the German Development Bank KfW with the support of the EU under the EU4Business initiative.

The main goal of the program is to support the financing of energy-efficient business investments to reduce energy consumption and CO2 emissions, which will contribute to increasing enterprise competitiveness and protecting the environment.

UKRGASBANK as a partner bank of the program received EUR 4 million to finance SME energy efficiency. It is important to note that funding to partner banks and entrepreneurs will be provided in Ukrainian hryvnia owing to the EU financial assistance within the framework of the EU4Business initiative that will cover losses of the Business Development Fund from foreign exchange rate fluctuations.

"The German government remains a reliable partner of Ukraine, especially in a difficult time of a full-scale russian invasion. We have always supported Ukrainian entrepreneurs and will continue to do so in the future. Today, to survive in these harsh conditions without sufficient energy supply and guarantee the operation of SMEs, entrepreneurs must be flexible and find new solutions every day. And we are ready to help them," said Anka Feldhusen, Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany in Ukraine.

"The state-owned UKRGASBANK has all the necessary tools to implement the energy-efficiency program. As the first sustainable development bank in Ukraine, we are more than anyone else interested in implementing a project aiming at protecting the environment. The Bank will introduce not only energy-efficient measures at the enterprises but also new approaches to SME lending based on international environmental and social standards of the Sustainable Finance Development Policy, which UKRGASBANK has been adhering to for several years. We thank our German partners for supporting the business and economy of Ukraine in a difficult time for all Ukrainians," said Rodion Morozov, Acting Chairman of the Management Board of UKRGASBANK.

Who can participate in the program?

Micro, small, and medium-sized enterprises that:

• have been operating for more than one year;
• have a positive credit history;
• must achieve a minimum CO2 reduction by 20% after implementing their energy-efficient investment project.

The SME must be a resident of Ukraine. An enterprise, its owners, or participants shall not be included in the Sanction List of Ukraine, the EU, the UN Security Council, and Germany.

How to participate?

1. The enterprise shall apply to UKRGASBANK and provide the necessary set of documents, based on which and according to the Program eligibility criteria, the Bank decides on granting a loan.
2. The maximum loan amount is up to EUR 500,000 in hryvnia equivalent. The maximum investment loan term is 5 years.

"The Ministry of Finance continues to attract international financial assistance: thanks to the support of the Government of the Federal Republic of Germany and the EU, we can offer Ukrainian banks and SMEs a credit resource in the local currency for EUR 7 million. It will protect entrepreneurs from foreign exchange rate fluctuations and ensure their stability in terms of energy efficiency. In the condition of russian military aggression against Ukraine, the Add Energy to Your Business Program can become a ‘life jacket’ for many Ukrainian enterprises," said Yurii Drahanchuk, Deputy Minister of Finance of Ukraine for European Integration.

"Considering rising energy prices in Ukraine and worldwide, this Program is of great importance and significance. The SMEs will get the first loans to purchase alternative power sources for ensuring uninterrupted operations. These are hundreds of saved jobs and therefore, hundreds of happy Ukrainian families. The loan from the German government was granted for 30 years, so the project will be long-term," noted Andrii Gapon, BDF Executive Director.

For reference:
Refinancing of Energy-efficient Investments of Ukrainian SMEs via Local Financial Institutions Project continues the Support for SMEs Project which laid the foundation for the local currency lending for SMEs. The total of UAH 1.4 billion were lent to SMEs within the project.

06.04.2023