UKRGASBANK and UNIDO to launch a loan guarantee fund for implementing energy management system in Ukrainian industry

The United Nations Industrial Development Organization (UNIDO) and JSB “UKRGASBANK” have signed a contract that will enable the launch and operation of a USD 1.5 Million Loan Guarantee Fund as special financial mechanism within the framework of the UNIDO-GEF project “Introduction of Energy Management System Standard in Ukrainian Industry”. Supported by national stakeholders, and cross-guaranteed by Citibank Europe PLC, the Loan Guarantee Fund is foremost aimed to facilitate industrial companies with getting access to capital for implementation of energy management systems in line with ISO 50001 and other energy efficiency measures. The Loan Guarantee Fund is the first and one of the kind guarantee based financial mechanism launched by a UN agency with a selected financial partner in Ukraine.

«Cooperation with international organizations is an important vector not only for our Bank activity, but for the future of Ukraine in general. It means that the best world expertize and practices can be effectively applied in our country. The support of international organizations is especially tangible and useful for SMEs, which currently experience the most difficult times. We are already cooperating with the world's best experts, including IFC, EIB, EBRD, NECFO, KfW, UNEP FI, CPLC, SME Finance Forum, PFAN, USAID and now - with UNIDO. Together we are going to lay the foundation to build a quality energy management system in our industry», Said Kyrylo Shevchenko, Chairman of the Board.

The Loan Guarantee Fund is expected to play an important role in boosting activities and further development of Ukraine’s market for industrial energy efficiency. It is especially important to have such a financial instrument available for Ukrainian industries during these trying COVID-19 recovery times, to support them with additional resources that can  be dedicated to improve assets optimization and bottom-line performance through energy efficiency, and ultimately help restore and strengthen business competitiveness.