Oschad plans to attract up to 20 million euros of investments from the Green for Growth Fund, Southeast Europe to support Ukrainian energy sector

The relevant letter of intent was signed yesterday by Oschadbank with the advisor of this fund, Finance in Motion GmbH, within the Ukraine Recovery Conference 2024.

According to the letter, the Bank intends to attract a dedicated loan facility in local currency to finance the energy efficiency measures of its clients as well as renewable energy projects in Ukraine. The investment is considered to be up to EUR 20 million equivalent in Ukrainian Hryvnas and is planned to be complemented with grants for end-borrowers. The potential closing of the deal is tentatively envisaged for H2 2024.

"Currently, the support of the Ukrainian energy sector is a key need of the Ukrainian economy. To promote this direction, Oshchad actively communicates with foreign partners who can help to reduce the cost of financing for the energy independence of Ukrainian businesses, communities and the country as a whole. We also offer our own financial products that will help our clients cope with the energy challenges that arise due to the destruction of Ukraine's energy capacity by the aggressor country," commented the signing Sergii Naumov, CEO of Oschadbank.

Finance in Motion is a leading impact asset manager with many years of specialist experience in impact investing. The mission of the Green for Growth Fund, Southeast Europe (GGF) is to contribute to enhancing energy efficiency and fostering renewable energies in the Southeast Europe region. This mission is reached predominantly through the provision of dedicated financing to businesses and households via partnering with financial institutions and by providing direct financing to Non-Financial Institutions.