Ukraine’s Oschadbank joins EBRD’s Energy Security Support Facility

Oschadbank has become the third bank in Ukraine to join theEuropean Bank for Reconstruction and Development’s (EBRD) Energy Security Support Facility (ESSF), a landmark programme that enables the country’s financial sector to provide better access to financing for energy security investments. It follows Ukrgasbank and PrivatBank, which joined the ESSF in September. 

The EBRD is extending an unfunded portfolio-risk-sharing facility partially covering credit risks in up to €100 million of newly originated sub-loans by Oschadbank. This will support the bank’s lending to micro, small and medium-sized enterprises (MSMEs), medium-sized corporate clients, regional municipalities and private households for the implementation of decentralised energy generation, storage and energy efficiency measures critical for Ukraine’s energy security.  

All ESSF sub-borrowers will receive technical assistance with structuring and implementation of their investments. At least 70 per cent of sub-loans will support green economy transition (GET) eligible projects. 

Up to 20 per cent of the total sub-loans will support financing of the long-term capital investments of MSMEs to upgrade their technologies and equipment to EU standards under the EU4Business-EBRD Credit Line. Eligible sub-borrowers will receive EU-funded technical assistance and grant support, funded by the EBRD Crisis Response Special Fund (CRSF).

The EBRD facility will be supported by partial first-loss risk cover guarantees extended by France and the European Union’s Ukraine Investment Framework (UIF).

Find out more

Press release

EBRD’s Energy Security Support Facility (ESSF)

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