Ukrgasbank has provided a loan to YASNO Energy Efficiency LLC under the framework of the Loan Guarantee Fund from UNIDO for the implementation of an energy-efficient project in the industry

Ukrgasbank and the energy service company YASNO Energy Efficiency LLC (YASNO EE) have signed a loan agreement for an amount exceeding UAH 7.2 million (equivalent to USD 200 thousand) within the Loan Guarantee Fund, established by the United Nations Industrial Development Organization (UNIDO) to support the implementation of energy-efficient measures in Ukraine's industry.

The proceeds of the loan will be used by YASNO EE to implement energy-saving measures at one of Ukraine's largest enterprises producing raw materials for the metallurgical industry. This will enable the enterprise to reduce annual energy consumption by over 1 million kWh and save up to 71% of energy resources.

The Loan Guarantee Fund (LGF) is a revolving financial instrument launched by the United Nations Industrial Development Organization (UNIDO-GEF UKR IEE Project) and Ukrgasbank to support capital availability for industrial enterprises for implementation of energy efficiency measures and the energy management systems.

This mechanism is structured in the form of loan repayment guarantee. The Loan Guarantee Fund (LGF) is a financial mechanism of the UNIDO-GEF UKR IEE project that utilizes CITI Bank, Ireland, guarantee to secure loans for Ukrgasbank. The guarantee is used to secure loans that meet the LGF's eligibility requirements, in order to assist companies in implementing energy efficiency projects and adopting Energy Management Systems (EnMS). Since its launch, the LGF has been the first financial mechanism in Ukraine to improve financing conditions for Industrial Energy Efficiency (IEE). Recently, the LGF's parameters have been updated and its operation has been extended until the end of 2025.

"According to experts' estimates, due to the low energy efficiency of Ukraine's economy, the country loses over a billion US dollars annually. Therefore, the implementation of energy-saving solutions is a necessary component for the effective operation of any enterprise, especially on a nation-wide scale. Implementing ESCO projects with the Loan Guarantee Fund from UNIDO not only allows industrial enterprises to reduce energy consumption but also to decrease carbon dioxide emissions. Of course, for Ukrgasbank, as a leader in sustainable development, supporting such projects is strategically important," noted Yurii Nosyk, Head of the VIP Corporate Clients Department at Ukrgasbank.

“One of the most important areas of Ukraine's recovery is increasing investments in energy efficiency to achieve the country's energy independence and bring national production closer to EU standards. We hope that cooperation with UNIDO in this format today will allow initiating the implementation of more extensive projects and attracting the attention of international ESCOs implementing them in Ukraine," stated Tetiana Griaznova, the CFO of YASNO.

30.11.2023