Ukrgasbank Signs a Guarantee Agreement with the EIB Group to Provide €27 Million Financing to Ukrainian SMEs

Ukrgasbank (UGB) has signed a partial portfolio guarantee agreement under the “EU4Business” Guarantee Facility with the European Investment Bank (EIB) and the European Investment Fund (EIF) to support Ukrainian small and medium-sized businesses (SMEs) and entrepreneurs. This agreement will enable the bank to finance Ukrainian businesses with a total amount of ca. €27 million.

The implementation of the Guarantee Facility will facilitate access to financing for SMEs to meet their urgent needs.

"Ukrgasbank has been cooperating with the EIB Group since 2017, and the new guarantee facility agreement is another important step in supporting Ukrainian businesses, as it significantly simplifies access to finance for entrepreneurs. Thanks to the support of the EIB and Ukrgasbank, many businesses have been able not only to continue their operations but also to expand their activities. In times of war, the support of partners becomes even more important for us, as it significantly strengthens Ukrainian business and the economy of Ukraine as a whole," says Volodymyr Ponomarov, First Deputy Chairperson of the Management Board of Ukrgasbank.

The guarantee will cover between 30% and 80% of the credit risk under loan agreements aimed at financing investment projects, working capital, and other purposes that support the development of SMEs. Additionally, the EIB guarantee will extend to documentary operations — such as bank guarantees and letters of credit — with plans to further expand the coverage to include factoring operations. Loans will be provided for terms starting at 6 months and may be issued in hryvnias, US dollars, or euros.

SME borrowers will benefit from participation in the EIB Guarantee Facility through a reduction of up to 60% in collateral requirements for their loan transactions.

SME entrepreneurs are invited to visit the bank’s branches to obtain detailed information and submit their applications for financing under the “EU4Business” Guarantee Facility.

“EIB Group has been supporting Ukrainian small and mid-sized companies with guarantee instruments already since 2016 and continues to deploy the guarantees also during the most difficult times for Ukraine. This latest partnership with Ukrgasbank will support €27 million of financing to Ukrainian enterprises with improved lending terms, especially the ones that lack collateral, to overcome this challenging environment and help them grow in Ukraine and in Europe,” said Vice-President Teresa Czerwińska of the European Investment Bank Group, who oversees the Bank’s operations in Ukraine.

The financing made available to Ukrgasbank has been facilitated by the support of the European Union under the “EU4Business” Guarantee Facility program.

10.02.2025