The Business Development Fund and UKRGASBANK to finance SME investments in energy supply and energy efficiency

On December 21, 2022, the Business Development Fund and UKRGASBANK signed a loan agreement for UAH 155 million under the project "Refinancing of energy-efficient investments of small and medium-sized enterprises (SMEs) of Ukraine via local financial institutions".

The project is financed with the Government support of the Federal Republic of Germany under the Loan and Grant Agreement for EUR 7.4 million signed between the Ministry of Finance of Ukraine, KfW German Development Bank, and the Business Development Fund.

UKRGASBANK will direct the loan funds to finance energy saving and energy supply SME investment projects under rolling blackouts which will contribute to smooth operations and the preservation of jobs at small businesses.

"UKRGASBANK has all the necessary tools and competence for prompt review and assessment of SME energy-efficient investments, which will allow facilitating the proper implementation of the project," noted Andrii Kravets, Chairman of the Management Board of UKRGASBANK.

The Project offers not only energy-efficient investments to SMEs but also introduces the new SME lending approaches based on international environmental and social standards of the Sustainable Development Finance Policy.

"Within the framework of the new Project, the Government of Germany provides financing and consulting to the Fund, partner banks, and SMEs aiming to implement environmental and social standards, as well as the sustainable development principles in financing SME energy-efficient investments," said Dr. Bianca Clausen, head of Sustainable Economic Development for Eastern Europe, Central Asia, and Turkey at KfW German Development Bank.

"Thanks to financial support from the EU, the Business Development Fund is capable to offer Ukrainian banks and SMEs loan funds in the national currency in combination with the "Affordable loans 5-7-9%" State Program to ensure the availability of energy-efficient investments to SMEs in rather difficult times," noted Andrii Gapon, BDF Executive Director.

21.12.2022