- Ukrgasbank and PrivatBank first two banks to join EBRD’s new Energy Security Support Facility
- EBRD will partially cover the risk for partner banks on loans for decentralised energy generation, energy storage and energy efficiency measures
- Overall ESSF will enable €700 million worth of lending for energy security investments
Ukrgasbank and PrivatBank have become the first two banks in Ukraine to join the EBRD’s Energy Security Support Facility (ESSF), a landmark programme that will enable the country’s financial sector to provide better access to financing for energy security investments in Ukraine.
The Bank is extending unfunded portfolio-risk-sharing facilities to both banks, which will support their lending to small and medium-sized enterprises (SMEs), medium-sized corporate clients, regional municipalities and private households for the implementation of decentralised energy generation and energy efficiency measures. The improvements are critical for Ukraine’s energy security.
To Ukrgasbank, the EBRD is extending a €150 million portfolio-risk-sharing facility, while to PrivatBank the EBRD is extending a €175 million facility for financing energy security projects in Ukraine.
Through the ESSF the EBRD will partially cover the risk of partner financial institutions on a total of €700 million of sub-loans for investment in decentralised energy generation, energy storage and energy efficiency measures.
Ukrainian businesses, state-owned enterprises, including municipalities, municipal companies and households, will be eligible for loans through the facility, thus strengthening their resilience to both immediate energy security risks and the medium-term impacts of climate change.
The ESSF programme is another example of the EBRD’s response to the unfolding energy crisis in Ukraine amidst the escalating Russian attacks on its critical energy infrastructure.
The attacks are estimated to have caused a loss of more than 9,000 MW of generating capacity in the country, significantly impacting Ukraine’s ability to maintain economic and industrial operations. Ukraine’s energy security and business survival is therefore at risk and the impact on civilians is acute.
To address this challenge, the EBRD is working with private and public sector clients, extending finance that is critical for maintaining energy security. The Bank has already provided more than €1 billion of finance for Ukraine’s state-owned energy companies since the start of the war, and has committed to provide a further €300 million to support decentralised energy generation projects across the country in a network that will be less vulnerable to these kinds of attacks.
Ukrgasbank is state-owned and the fifth largest bank in Ukraine, and one of 15 systemic banks in the country. It operates a country-wide network of 215 branches servicing around 1.5 million individuals and over 87,000 corporate and SME customers.
PrivatBank is state-owned and the largest systemically important bank in Ukraine. It specialises in servicing retail and micro, small and medium-sized clients through a country-wide network of 1,100 branches and 5,000 ATMs.
The EBRD is Ukraine’s largest institutional investor. It has deployed more than €4.5 billion in the country since 2022 and has secured agreement for a further €4 billion capital increase to continue lending at these levels in wartime, with the potential for more once full reconstruction begins.
