EBRD extends risk cover to Raiffeisen Bank Ukraine to enable EUR 100 million for energy investments
The European Bank for Reconstruction and Development (EBRD) is helping to support energy security in Ukraine by extending an unfunded portfolio-risk-sharing facility to Raiffeisen Bank Ukraine, to enable €100 million of energy investments.
Raiffeisen Bank joins the EBRD’s Energy Security Support Facility (ESSF) - a landmark programme that enhances access to financing for critical energy security investment in Ukraine.
Under the ESSF, the EBRD’s portfolio guarantee will partially cover the risk on a total of €100 million of sub-loans extended by Raiffeisen Bank to micro, small and medium-sized enterprises (MSMEs) and eligible corporate and household clients for the implementation of decentralised energy generation, energy storage and energy efficiency measures critical for Ukraine’s energy security.
All ESSF sub-borrowers will receive technical assistance with the structuring and implementation of their investments. At least 70 per cent of sub-loans will support projects consistent with the EBRD’s Green Economy Transition approach.
Up to 20 per cent of sub-loans will help MSMEs to finance long-term capital investment aimed at upgrading their technology and equipment in line with European Union (EU) standards under the EU4Business-EBRD Credit Line. Eligible sub-borrowers will receive EU-funded technical assistance and grant support.
Residential sub-borrowers (households and housing associations) will receive up to 2 per cent of total sub-loans under this project, and they will also benefit from grant support funded by the EBRD’s Crisis Response Special Fund.
Across the project as a whole, grant support for eligible sub-borrowers will cover between 10 and 30 per cent of the investment costs financed under the ESSF. Higher incentives will be provided to businesses and households most affected by the war on Ukraine, including those impacted by the destruction, loss or relocation of assets due to the war, as well as sub-borrowers facilitating the reintegration of war veterans, persons with disabilities and internally displaced persons, and sub-borrowers located in acutely war-affected parts of Ukraine.
The EBRD’s facility is supported by partial first loss risk cover guarantees funded by France and the EU’s Ukraine Investment Framework.
The ESSF programme is just one element of the EBRD’s response to the energy crisis in Ukraine amid Russian attacks on critical energy infrastructure. These attacks have resulted in Ukraine losing more than 9,000 MW of generating capacity, significantly impacting its ability to maintain economic and industrial operations.
Raiffeisen Bank’s CEO, Oleksandr Pysaruk, said: “This is the third portfolio-risk-sharing agreement between Raiffeisen Bank and the EBRD since February 2022. These agreements have enabled us to provide over €220 million of financing to Ukrainian clients, along with up to €2 million of incentives for successfully completed investment projects. We are sincerely grateful to our shareholder, the EBRD, and European Union donors for their continued support for Ukrainian businesses and their unwavering responsiveness to the needs of our clients.”
Ruslan Spivak, Head of Institutional Clients, Investment Banking and Corporate Strategy at Raiffeisen Bank, said: “This new facility will help our customers to build strong energy resilience, reduce energy consumption and improve cost efficiency. The facility also allows to get up to 30 per cent of investment stimulus for certain eligible MSME customers with specific support for vulnerable groups, such as veterans, veteran-related businesses, relocated businesses, women and young people. It will contribute to the growth and expansion of businesses, creating new jobs, increasing awareness of ESG and implementing socially relevant infrastructure projects.”
Raiffeisen Bank is Ukraine’s largest private bank and the country’s fourth largest bank overall. Its vast branch network serves 2.6 million active clients, offering conventional banking products to corporate, SME and retail customers.
The EBRD has already allocated €74 million of EU grant support to Ukrainian MSMEs under the EU4Business-EBRD Credit Line, of which €5.5 million has been issued to projects through Raiffeisen Bank.
The EBRD has strongly supported Ukraine in wartime. It deployed a record €2.4 billion in Ukraine’s real economy in 2024 and has deployed more than €6.2 billion since the war began in 2022. It is Ukraine’s largest institutional investor.
