Ukraine Sub-Fund
Invest in Ukraine’s future
MSMEs in Ukraine are the backbone of their economy. We know these resilient businesses can make it through the uncertainty of conflict and thrive in the long-term.
But they need financing and technical support, and they need it now. Economic losses are estimated at EUR 383 billion, Russia has damaged 20% of agriculture stock and 2.4 million jobs have been lost.
We can respond rapidly - we have a ready-to-deploy structure. Our experience in Ukraine means we already have a wide network of financial institution partners, with a strong presence in the vital agricultural sector. We can quickly scale up financing.
We are determined to help Ukraine build a better future.
Working with our substantial investor base
Working with our substantial investor base
We can draw on our deep public investor base to quickly scale our recovery efforts
Our large first-loss capital basis is providing strong support. However, this is also a blended finance vehicle and aims to expand with investments from development banks and institutional investors.
We have ringfenced the Ukraine sub-fund’s activities to maintain the EFSE Regional Sub-Fund's risk profile and accommodate different investment goals.
Investors in the Fund can rely on greater first-loss protection, reflecting the higher risks of investing in Ukraine during wartime.
Addressing the most pressing market distortions
Access to finance for MSMEs is deteriorating
Banks need to lend to struggling MSMEs, but the war has hurt their profitability and capitalization, due to the loss of assets, collateral and revenues. They no longer have the capital or the risk appetite.
Bank financing decisions also typically rely on MSMEs having adequate funds to contribute to the financed project, but these have been exhausted by prolonged period of distress.
The need for finance and support has never been greater
Disrupted value chains, loss of inventories, higher costs are all hurting businesses across the country. Many are also facing the additional costs of relocation and repair works. MSMEs urgently need financing, advice and capacity building to implement necessary adaptions.
We provide long-term, local currency financing, complemented by investment grants and advisory and capacity building. We invest via financial institution in MSMEs, with a focus on the agricultural sector.
Read more about how we generate impact and build capacity.
