IFC and UKRSIBBANK Join Forces to Boost Medium-Sized and Larger Corporates in Ukraine

·       New €66 million risk-sharing facility to support medium-sized and larger corporates (midcaps)

·       Facility to help provide critical financing to maintain operations, preserve jobs, and enhance energy security

Kyiv, Ukraine, April 28, 2025—IFC and UKRSIBBANK, owned by BNP Paribas and the EBRD, today announced a new risk-sharing facility (RSF), totaling €66 million, to address the critical financing needs of medium-sized and larger corporates (midcaps) in Ukraine. The facility aims to help these businesses grow while preserving and creating jobs, and delivering essential goods and services.

While Ukraine’s economy has remained resilient, the country has lost a significant share of its productive capacity due to supply chain disruptions, power outages, and labor shortages. According to the World Bank Group’s fourth Rapid Damage and Needs Assessment (RDNA4), direct damages were estimated at $176 billion as of December 31, 2024, economic losses at $589 billion, and reconstruction needs at $524 billion over 10 years.

Private sector companies, particularly midcaps operating in critical sectors, are facing financial constraints as credit to the corporate sector continues to decline. Although business lending has grown since 2024, including for capital investment, it still accounts for a significantly lower share of banking sector assets compared to 2021, as banks continue to favor less risky assets.

RSFs allow IFC’s partner financial institutions to share the credit risk on portfolios of eligible loans and other assets, helping to support lending—particularly in volatile markets. The new RSF will cover a portfolio of new loans and other credit instruments, enabling UKRSIBBANK to scale up lending to eligible midcaps in sectors such as agribusiness, manufacturing, trade, and logistics.

Approximately 20 percent of the RSF portfolio will be dedicated to financing small-scale renewable energy generation and energy efficiency projects—to bolster Ukraine's energy security. This has been designed specifically to help address Ukraine’s need to boost energy generation in the short term while enhancing system resilience and reducing greenhouse gas emissions by 34,080 tons of equivalent tCO2e per year.

Laurent Dupuch, chairman of the management board UKRSIBBANK, said: "By supporting businesses and entrepreneurs, we are not just financing projects. We are investing in Ukraine's economic resilience and the confidence of Ukrainians in their future. Cooperation with IFC will allow more companies to access loans.

He added: “Through the new program, we can strengthen key sectors, businesses, and entrepreneurs that sustain livelihoods and ensure energy security. However, it also has a significant social impact, as people, jobs, and communities are often behind every business. In this way, together with international partners, we contribute to Ukraine's sustainable recovery.".

Ines Rocha, IFC Europe Director, said: "Ukraine’s private sector has a key role to play in meeting reconstruction needs, preserving and creating jobs. This investment will not only support employment but also bolster the country's efforts to ensure energy security and resilience.”

Under the agreement, IFC will assume 50 percent of the credit risk—up to €33 million. IFC’s participation is supported by a partial guarantee from the government of France. The United Kingdom’s Foreign, Commonwealth & Development Office is providing additional financial support to incentivize midcaps to undertake new longer-term and more sustainable initiatives.

The investment in UKRSIBBANK marks IFC’s sixth risk-sharing investment in the country since Russia’s invasion of Ukraine and is expected to enable around $100 million in new lending to midcaps. Overall, IFC’s RSF program in Ukraine is expected to generate approximately $1 billion in new financing for smaller businesses and midcaps.