The European Bank for Reconstruction and Development (EBRD) has signed portfolio risk-sharing facilities with two Ukrainian banks, UKRSIBBANK BNP Paribas Group and ProCredit Bank Ukraine (PCBU). The two deals will together amount to €100mn in new financing for businesses and households amid Russia’s ongoing war on the country.

UKRSIBBANK will provide €30mn in loans backed by the EBRD facility, which covers up to 50% of the bank’s credit risk. The financing will target companies in critical sectors including agribusiness, manufacturing, pharmaceuticals, transport and logistics, as well as residential borrowers seeking to implement energy security projects. This is the second such risk-sharing facility extended to UKRSIBBANK.

PCBU will issue €70mn in loans under its facility, also partially covered by the EBRD. The bank will prioritise lending to enterprises in vital sectors and to micro, small and medium-sized enterprises (MSMEs) investing in technological upgrades in line with EU standards. This marks the fifth such facility provided to PCBU since the start of Russia’s full-scale invasion in 2022.

At least 70% of loans provided by UKRSIBBANK under the facility will finance green transition projects. Up to 10% will be directed towards residential borrowers to finance energy generation and efficiency investments, and up to 20% will be granted to MSMEs’ investments in convergence with EU standards.

Both facilities offer additional investment incentives for borrowers whose assets have been destroyed or damaged by war.

UKRSIBBANK is majority-owned by BNP Paribas and is one of Ukraine’s largest lenders, with the EBRD as a minority shareholder. PCBU, wholly owned by ProCredit Holding AG, is among Ukraine’s 15 largest banks and is a key player in SME finance.

The EBRD has committed more than €7bn to Ukraine’s real economy since the outbreak of the war and has invested over €22bn in the country across more than 600 projects to date.