Luxembourg and Kyiv, 29 December 2020 – The Green for Growth Fund (GGF) has provided a loan of EUR 5 million equivalent in Ukrainian hryvnia to its new partner Bank Lviv in Ukraine. The funds will be used to serve business clients, primarily from the agricultural and agri-processing sectors, in greening their production. Through the investment, the partners aim to support sustainability in these businesses’ operations while safeguarding them from exchange rate risk – thus contributing to their resilience and supporting a green economic recovery in Ukraine during and post the COVID-19 crisis.
Bank Lviv has a long track record in green lending in Western Ukraine with a focus on business clients. This particularly includes those from the agricultural and processing sectors, where there is a strong demand for funding to replace or refurbish outdated, less energy-efficient machinery with modern, energy-saving equipment.
Moreover, by facilitating this financing in local currency, the partners are also protecting businesses from exchange rate risks that can potentially hamper their financial stability. Such safeguarding is particularly important due to the current economic challenges brought about by the coronavirus pandemic.
This investment in local currency was made possible by the European Commission under the EU4Energy initiative.
GGF Chairman Olaf Zymelka said: “The GGF constantly strives to deepen the positive environmental impact and broaden the outreach of its investments. That is why we are particularly excited to form this new partnership with Bank Lviv. The investment in local currency will not only go a long way toward expanding access to green finance for businesses in Ukraine, it will do so in a manner that protects them from potentially hazardous exchange rate fluctuations.”
Bank Lviv CEO Ashot Abrahamyan said: “Our partnership with GGF means new opportunities for agricultural and rural producers who strategically plan for the future and implement energy-effective projects. Bank Lviv is known as one of the first banks in the region to offer green loans to businesses in Western Ukraine. The availability of GGF funds will help Bank Lviv to increase its outreach, especially to rural businesses and smaller agricultural producers, for whom the availability of hryvnia loans is essential. We are glad to join this partnership, united in our commitment to create positive conditions that motivate producers invest in ecological projects.”
ABOUT THE GGF
The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions, and improve resource efficiency in 19 markets across Southeast Europe and Turkey, the European Eastern Neighbourhood Region, and the Middle East and North Africa. The fund provides such financing directly to renewable energy projects, corporates and municipalities or indirectly via selected financial institutions. The GGF’s Technical Assistance Facility maximizes the fund’s investment impact through support for capacity building at local financial institutions and partners.
The GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian Development Bank (OeEB). The fund’s growing investor base comprises donor agencies, international financial institutions and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, and the German ethical bank GLS. The GGF is advised by Finance in Motion GmbH. MACS Energy & Water GmbH, Frankfurt am Main acts as the technical advisor.
ABOUT BANK LVIV
Founded in 1991, Bank Lviv has built a strong reputation as a reliable regional player with solid governance and risk management, international European shareholders, and high priority on transparency and trust. Bank Lviv is a specialized provider of banking services to MSMEs and agricultural businesses, with a focus on tailor-made financing and committed customer care. It is also developing into a bank of choice for private households who are seeking a local bank which offers simple products and high service quality. Bank Lviv maintains its regional focus on Western Ukraine while further building its market position in an increasingly dynamic economic environment.
For more information on Bank Lviv, please visit: www.banklviv.com
The EU4Energy Initiative covers all EU support to improve energy supply, security and connectivity, as well as to promote energy efficiency and the use of renewables in the Eastern Partner countries Armenia, Azerbaijan, Belarus, Georgia, Republic of Moldova and Ukraine. It does this by financing projects and programmes that help to reform energy markets and to reduce national energy dependence and consumption. Over the longer term, this makes energy supply more reliable, transparent and affordable, thus reducing energy poverty and energy bills for both citizens and the private sector.
For more information, please visit: www.eu4energy.eu
Media contact GGF
Manager Marketing & Communications
Phone: +49 (0)69 271 035-171
Media contact Bank Lviv