The state-owned JSC Ukreximbank and NEFCO have signed a loan agreement for setting up a new green facility to support the implementation of renewable energy and energy-efficiency projects in Ukraine.
The new EUR 10 million facility will finance small and medium-sized projects implemented by Ukrainian companies related to renewable energy and energy efficiency over a period of five years. NEFCO will provide a EUR 5 million loan to the facility. Since 2008, Ukreximbank has financed over 300 sub-projects related to energy efficiency and renewable energy.
Until now, Ukreximbank, together with other international financial institutions (IFIs), has financed energy-efficiency projects and renewable energy projects related to solar and wind energy, bioenergy and hydropower, among others, with a total capacity of over 700 MW. However, NEFCO is the first IFI partner exclusively financing green projects. The bank has its own project implementation unit working with green projects, and every sub-project to be financed through the facility shall meet NEFCO’s environmental and sustainability guidelines.
“Whilst sustainable energy financing is a priority business area of both institutions, at Ukreximbank we are glad to unite not only our financing but more importantly our expertise with NEFCO, which is promoting best practices in energy efficiency and renewables to both corporate and municipal sectors in Ukraine,” commented Ievgen Metsger, Chairman of the Management Board of Ukreximbank on the occasion of the launch of the mutual facility.
NEFCO has been cooperating with the bank in administrative matters regarding small energy-saving projects since 2014. These projects are implemented together with the municipalities across Ukraine.
“Ukreximbank has a strong track record in green financing, and we are very pleased to support the implementation of small and medium-sized projects within both the private and public sectors through the new facility,” commented Trond Moe, Managing Director at NEFCO, in connection with the signing of the loan agreement.
Since 2008, NEFCO has been financing several bank facilities and programmes which support the implementation of green projects, primarily within the fields of energy efficiency and renewable energy in the private sector. In Ukraine, NEFCO is currently loan-financing two other facilities through which the Ukrainian bank is offering its clients loans that support the country’s green transition.
* Pictures are courtesy of NEFCO
For further information, please contact:
Sergiy Khudiyash, Head of IFI Programmes, Ukreximbank
SKhudiyash@hq.eximb.com, tel. +380 44 247 80 85
Thor Thorsteinsson, Senior Financial Manager, NEFCO
email@example.com, tel. +358 10 6180 657
JSC Ukreximbank was founded in 1992 and is a fully state-owned bank. It has 22 branches and 38 sub-branches across Ukraine and today employs approximately 3,550 persons. The bank currently has some 37,000 corporate clients and 700,000 private customers. In addition to facilitating Ukraine’s economic development, one of the bank’s key missions is to implement energy-efficiency programmes. Read more at www.eximb.com
Nordic Environment Finance Corporation (NEFCO) is an international financial institution (IFI) established in 1990 by the five Nordic countries, Denmark, Finland, Iceland, Norway and Sweden, with the aim of having a positive impact on the climate and environment in a cost-efficient way. By focusing on small and medium-sized projects with tangible results, NEFCO provides high additionality to governments, co-financiers and customers. Over the years, NEFCO has financed more than 1400 private and public sector projects across different sectors in 80 countries, with strong focus on Eastern Europe, the Baltic Sea, and the Arctic and Barents Regions. NEFCO’s headquarters is located in Helsinki, Finland. Read more at www.nefco.org