The Nordic Environment Finance Corporation (NEFCO) and the state UKRGASBANK have launched a new program to support the renewable energy projects implemented in Ukraine. The program with a EUR 10 mln euros budget will finance SME projects for a seven-year period. NEFCO signed a loan agreement with UKRGASBANK in the EUR 5 mln amount and another EUR 5 mln will invest in the UKRGASBANK program.
UKRGASBANK, the fourth largest bank in Ukraine, has significant experience and “green” projects portfolio. Since 2016, more than 140 clean energy projects have been funded using biofuels, hydropower, solar and wind energy with a total capacity 845 megawatts. Thanks to the new program, UKRGASBANK plans to strengthen its participation in “green” financing, especially for SMEs.
The program will provide loans for renewable energy projects throughout the country. Taking into account gained experience and successful projects. It is expected that the program funds will be fully used in the first quarter of 2019.
“This is very important initiative for our bank, since it combines our main directions: “green financing” and SMEs financing. Since 2016, when UKRGASBANK started its “green way”, it has funded a quarter of “green” projects in Ukraine. The joint program with NEFCO will allow us to expand support for Ukrainian SMEs that share our desire to achieve Ukraine energy independence and resist climate change,” – Andrii Kravets, First Deputy Chairman of the Board of UKRGASBANK, said.
Now NEFCO credits a number of banks in countries of its activity in Eastern Europe and supports energy efficiency implementation and renewable energy projects in private sector. Since 2008, NEFCO has provided loan financing to three similar programs with Ukrainian banks, and also financed other projects related to energy efficiency and renewable energy. NEFCO’s current projects portfolio in Ukraine includes 140 projects that are at different implementation stages.