“BlackRock”/”JPMorgan’s” Bank of Reconstruction of Ukraine

by Meifan Honcharuk
Monday, June 19, 2023
“BlackRock”/”JPMorgan’s” Bank of Reconstruction of Ukraine

The investment company and the holding create a platform for foreign investment in Ukraine and maximisation of capital participation

The Financial Times reports that BlackRock and JPMorgan have proposed to the government of Ukraine to jointly create a reconstruction bank that will attract foreign funds to rebuild Ukraine in the areas of infrastructure, climate and agriculture. With the help of BlackRock and JPMorgan, these industries will become attractive to long-term investors and lenders. In addition, the accumulation of resources for the Ukrainian market will provide companies with data for forecasts of Ukraine's investment climate.

"So many of today's long-term problems are best solved through blended finance, and this is one of those cases. We need tools like this to mobilise capital in large volumes," BlackRock vice chairman Philip Hildebrand.

Today, the state government, BlackRock and JPMorgan are developing the plan for the fund, and potential investors can familiarise with it. The launch of the reconstruction fund is planned for "after the victory of Ukraine," and until then, the bank accumulates "hundreds of billions of dollars" of investments.

"The fund is being created to also provide investors from the public and private sectors with the opportunity to invest in specific projects and sectors. There will be various industry funds that the fund has identified as priorities for Ukraine. The goal is to maximise capital participation," JPMorgan's head of debt capital markets for CEMEA Stefan Weiler.

We remind you that Boris Johnson also started a private fund for the future reconstruction of Ukraine.

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