EBRD extends new guarantee to UKRSIBBANK to unlock €30 million of new finance

On 7 May, the European Bank for Reconstruction and Development (EBRD) announced the extension of a new unfunded portfolio risk-sharing facility to Ukraine’s UKRSIBBANK BNP Paribas Group.

The EBRD’s facility will cover up to 50 per cent of UKRSIBBANK’s credit risk on €30 million of new subloans to borrowers in Ukraine. Under this facility, UKRSIBBANK will provide subloans to companies in critical industries such as agribusiness, manufacturing, pharmaceuticals, transport and logistics, as well as residential borrowers who are looking to implement energy security projects. This is the second time that the EBRD has provided such a facility to UKRSIBBANK.

Up to 20 per cent of total subloans will support the financing of long-term capital investments by micro, small and medium-sized enterprises, helping them to upgrade their technology and equipment in line with European Union standards under the EU4Business-EBRD Credit Line. Eligible sub-borrowers will also receive EU-funded technical assistance and grant support funded by the EBRD’s Crisis Response Special Fund.

Up to 10 per cent of total subloans will be granted to residential sub-borrowers (households and housing associations) to finance energy generation, energy storage and energy efficiency investments under the EBRD’s Energy Security Support Facility. At least 70 per cent of subloans will finance projects supporting the transition to a green economy.

Sub-borrowers whose assets have been destroyed, lost or relocated due to the war will be supported by additional investment incentives, as will sub-borrowers who are engaged in reintegrating veterans into the workforce.

The EBRD’s facility will be backed by first-loss risk cover funded by France and the European Union (under the EU’s Ukraine Investment Framework).

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Press release