UKRSIBBANK and IFC join forces to boost midcaps in Ukraine

IFC and UKRSIBBANK, owned by BNP Paribas and the EBRD, have announced a new risk-sharing facility (RSF), totaling €66m, 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 US$176bn as of December 31, 2024, economic losses at US$589bn, and reconstruction needs at US$524bn 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 per cent 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 US$100m in new lending to midcaps. Overall, IFC’s RSF program in Ukraine is expected to generate approximately US$1bn in new financing for smaller businesses and midcaps.

About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. IFC works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record US$56bn to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilising private capital to create a world free of poverty on a livable planet.

Source: IFC