New Long-Term Finance Package Aims to Boost Sustainable Energy Investment amongs...

Print
 
Oct 2019
Ukraine, October, 29 2019 - The International Finance Corporation (IFC), a member of the World Bank Group, is providing a financing package equivalent to up to 50 million US dollars to OTP Leasing in Ukraine to scale up sustainable energy investments, particularly for small and medium enterprises (SMEs).

Ukraine is among the world’s most energy-intensive economies, partially attributed to its large industrial base with prevalently outdated and inefficient production technologies. Improvement of supply-side efficiency in the power sector, increasing the share of renewable energy, and enhancement of end-use energy efficiency are critical for Ukraine to sustain economic growth.

The long-term financing – currently not readily available in Ukraine, especially for SMEs – will enable businesses to acquire energy-efficient machinery and upgrade their facilities with modern equipment to support a lower carbon footprint. IFC’s first climate-dedicated investment in Ukraine’s leasing sector includes 20 million US dollars equivalent from IFC’s own account, 20 million US dollars from Climate Investment Funds, and a syndicated loan of up to 10 million US dollars equivalent.

“Historically, the scarcity of long-term funding has limited the ability of businesses, especially SMEs, to finance the acquisition of modern technologies and equipment,” said Andrii Pavlushyn, OTP Leasing’s CEO. “Our cooperation with IFC aims to help change that and encourage private sector investment in sustainable technologies.”

The Ukrainian leasing market is far below its potential for supporting businesses, especially SMEs. At the same time, sustainable energy financing and leasing make an ideal combination, as leasing products for businesses are especially focused on various types of energy-efficient equipment and machinery.

“Investment in climate change mitigation and sustainable growth is among IFC’s priorities in Ukraine,” said IFC Vice President for Europe, Central Asia, Latin America, and the Caribbean Georgina Baker. “This first IFC green-leasing project in Ukraine aims to promote growth  in the country’s leasing sector, especially among smaller agricultural players and entrepreneurs. It will also help attract other investors, ultimately bolstering Ukraine’s climate finance market, enhancing access to finance, and creating jobs.”



Source : Emerging Europe
 

Research Analysis Tools

The fund indexes, institution benchmarks and other market information displayed here are all Symbiotics designed analysis tools, created in-house by our analysts and experts. Symbiotics has one of the oldest track records in microfinance investment analysis dating back to the late 1990s; its indexes and benchmarks have been regularly used as markers by investors, asset managers, financial institutions and practitioners. These, as well as several other research products, are available through the Research Account. Click on the link below to find out more.

Learn More