“EBRD” in Ukraine

by Meifan Honcharuk
Thursday, December 2, 2021
“EBRD” in Ukraine

"European Bank for Reconstruction and Development" — mission to change people's lives

Those who regularly read investment news have heard a lot about EBRD. The Bank is constantly investing in new projects. This article is for those curious about what the EBRD is doing, why the Bank is investing so much, and who can get financing from the Bank.

History of EBRD 

The EBRD was established in 1991 after the Cold War to build a new era in Central and Eastern Europe. Since its establishment in 1991, the Bank has implemented over 6.133 projects.

The mission of the Bank 

The Bank invests in projects that contribute to the transition to an open market economy and the development of private and entrepreneurial activities. The company provides project financing for banks, economic sectors and individual enterprises, both newly created and existing.

The EBRD does not finance state budget expenditures but invests only in private and public development projects, except for the defense and tobacco industries and gambling projects.

Within the adopted strategy framework, the EBRD works in two directions: providing international loans on concessional terms under government guarantees and lending to private enterprises on commercial terms.

EBRD's offices 

EBRD has offices in more than 30 countries - from Central and Eastern Europe to Central Asia and in the Southern and Eastern Mediterranean. The investment bank is also the largest investor in the region of our operations.

Investments in Ukraine

The EBRD is one of the largest institutional investors in Ukraine. At the beginning of November 2021, the total volume of financing allocated to Ukraine by the Bank was 15.6 billion euros within the framework of 507 projects.

Investment industries include:

  • Investments in the green sector and projects aimed at improving the environmental situation in the world. There is a Green City program in which 46 cities participate, six of which are Ukrainian;
  • Financing of energy-efficient buildings. Under such programs, besides financing from the EBRD, funds from other donors can be attracted;
  • Enterprise transformation;
  • Investments in the corporate sector;

Primary conditions for project financing:

  • Implemented in one of the EBRD's countries of operations;
  • Good chances of profitability;
  • Large equity contribution made by the sponsor of the project;
  • The project meets the interests of the domestic economy;
  • The project meets the environmental requirements of the EBRD and the host country.
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