Oschadbank and EBRD to finance energy independence of customers for a total of EUR 100 million

As part of its participation in the EBRD's Energy Security Support Facility (ESSF), supported by the EU and France, Oschadbank will provide Ukrainian businesses, municipalities and households with access to loans and grant support for the implementation of projects in the field of energy generation, storage, and energy efficiency.

As part of the ESSF, the EBRD will provide partial risk coverage for loans to be provided by Oschadbank to its customers. The loan portfolio covered by the EBRD's risk-sharing mechanism will be up to EUR 100 million. The financing will be directed to projects of mid-cap companies, municipalities and utilities, micro, small and medium-sized enterprises (MSMEs), as well as equipment purchases by private households and housing associations.

At least 70% of the program's loans will be used to finance projects that meet the criteria of the green economy transition.

Up to 20% of the total funding will be used to support long-term capital investments in MSMEs seeking to modernize their technology and equipment in line with EU standards. Participants in this area will have access to technical assistance from the EU, as well as grant support through the EBRD's Crisis Response Special Fund (CRSF). At the same time, private households and condominiums will receive up to 10% of the total funding under the ESSF and will also be able to use CRSF grants.

Increased grant support is envisaged for businesses and households most affected by the war, as well as for those who contribute to the reintegration of veterans, people with disabilities, and internally displaced persons. A larger percentage of grant reimbursement will help to restore destroyed assets, adapt to new conditions, or reintegrate vulnerable groups of people.

Thus, MSME borrowers, private households, and condominiums will be able to receive 10% to 30% compensation for the amount of their investment costs in the form of grants.

“Oschadbank always supports initiatives aimed at developing energy independence of Ukrainian business. Joining the ESSF is another important step in our cooperation with the EBRD, which is a strategic partner of Oschad. We are confident that these funds will help our clients to face the current challenges in the field of energy security, as it is critical for the sustainable development of Ukraine's economy,” said Sergii Naumov, Chairman of the Management Board of Oschadbank.

Implementation of this project was made possible with the support of international donors, in particular through partial risk guarantees extended by France and the European Union’s Ukraine Investment Framework (UIF).

With the new agreement, the total amount of financing in the Ukrainian market secured by EBRD guarantees since the beginning of Russia's full-scale invasion is about EUR 2 billion.