The International Finance Corporation (IFC), part of the World Bank Group (WB), plans to submit a $1 billion financing package for Ukraine to its Board of Directors in November, including direct lending, financial guarantees and trade finance instruments, the Deputy Minister said. economics Alexander Griban.
“It is expected that such financing will also mobilize private loan capital, because IFC usually finances no more than 30% of the project cost, including commercial banks in the financial consortium. Thus, the total volume of projects of Ukrainian enterprises that can be financed will be more than $ 3.3 billion,” he was quoted in a press release from the Economy Ministry on Friday.
Hryban added that IFC is also actively working with the European fund for sustainable development (EFSD), which has already received a request for $2 billion. According to him, these funds are also planned to be used to introduce financial instruments to support Ukraine.
Prime Minister of Ukraine Denys Shmygal invited the International Finance Corporation (IFC) from the World Bank Group to join the reconstruction of Ukrainian cities.
“The head of the Ukrainian government spoke about the scale of destruction as a result of Russia’s criminal actions and expressed hope for the support of the International Finance Corporation in the issue of restoring the housing stock and social infrastructure,” the press service of the government said after a meeting between Shmyhal and the managing director and executive vice IFC President Makhtar Diop.
According to him, Ukraine plans to carry out the restoration on the principles of a green economy.
The prime minister also noted that he was counting on IFC assistance in financing the restoration of the transport infrastructure of Ukrainian cities, especially those most affected by the actions of the occupiers.
“We are interested in creating a financial platform for the IFC, which will finance more Ukrainian cities. Today, attracting foreign investment in the restoration of critical and social infrastructure is one of the most important issues on the agenda of Ukraine,” the head of government added.
In addition, Shmyhal focused on the need to extend public-private partnership projects after Ukraine’s victory. In particular, this concerns the implementation of concession projects at airports, railway stations, seaports, as well as public-private partnership projects in the road industry.
“The resilience of the people of Ukraine is outstanding. Consider IFC as a strong and strategic partner that will play its part in supporting the private sector,” Diop tweeted after the meeting.
The International Finance Corporation (IFC) may provide Zaporizhia with a $55 million long-term loan to finance a package of initiatives aimed at improving energy efficiency, infrastructure development and transport logistics.
The board of directors plans to consider this project on February 15, 2021, the bank said on its website.
IFC plans to provide Zaporizhia with up to EUR 36.7 million of a loan from its own funds and to organize another EUR 18.3 million through the Managed Co-Lending Portfolio Program (MCPP).
It is assumed that the funds will be used for the installation of an intelligent traffic control system, street lighting and modernization of control centers, the purchase of electric buses, trolleybuses and related infrastructure, (reconstruction of traction equipment, substations, the purchase of road construction and cleaning equipment, as well as the reconstruction of roads and the development of public parks.
In addition, IFC will help develop a Smart City 2.0 strategy for Zaporizhia
The International Finance Corporation (IFC) of the World Bank Group can provide up to EUR27 million to the municipal transport company Shvidkisniy Tramway (High-Speed Tram) to procure 50 trams and rehabilitate 1 km of associated tramway line.
According to information on IFC’s website, the board of directors of the corporation intends to consider the relevant issue on December 21.
The tram vehicles will be operating on the existing underground and on the ground tram lines of the city and will be replacing obsolete vehicles.
The component relevant to the tramway line rehabilitation will take place on circa. 1 km section of Sobornosty Avenue, one of the main east-west transport arteries in the city center, located in the Metalurhiv district of Kryvy Rih. The construction is expected to start in April 2021 and to be completed by December 2021. The work involves dismantling the existing rail tracks and the overhead catenary, laying new tracks, mounting the catenary lines and final clean up and landscaping.
In parallel, as part of IFC’s Ukraine Cities Program, IFC is providing city with comprehensive advisory support to facilitate project implementation and increase its impacts. Activities include recommendations on improving sustainability and operational efficiency of transportation sector, reviewing tramway electric power supply system and related infrastructure to advise on capital modernization needs, as well as support in the technology specifications and selection of new low-floor energy efficient tram cars.
The project will enhance physical connectivity of remote districts and encourage tramway use, expected to contribute to the reduction of pollution and congestion in the city.
The International Finance Corporation (IFC), a member of the World Bank Group, has issued a $100-million senior loan to ProCredit Holding to be channeled to ProCredit banks in nine countries to support small and medium enterprises (SMEs) in multiple vulnerable economies, including Ukraine.
According to IFC, the project was approved on June 18 and necessary documents were signed on July 9.
ProCredit will channel the financing to its subsidiaries in Albania, Bosnia and Herzegovina, Ecuador, Kosovo, Moldova, North Macedonia, Romania, Serbia, and Ukraine.
At the beginning of July, the European Investment Bank (EIB) decided to provide Ukraine, Georgia and Moldova with EUR 55 million through ProCredit Bank in the respective countries to support SMEs within mitigating the effects of the economic shock.
ProCredit Bank in Ukraine was founded in 2001. At the beginning of 2020, its sole shareholder was ProCredit Holding (100% of the shares).
According to the National Bank of Ukraine, as of May 1, 2020 ProCredit Bank ranked 14th among 75 banks operating in the country in terms of total assets (UAH 25.646 billion).
The International Finance Corporation (IFC), a member of the World Bank Group, has placed its debut issue of bonds denominated in hryvnias at 15.75% per annum to support its operations in Ukraine.
On May 13, the first issue of bonds in the hryvnia was carried out, IFC Regional Manager for Ukraine, Belarus and Moldova Jason Pellmar said.
According to him, this placement confirms interest in hryvnia instruments in the market, especially when the issuer has an “AAA” rating.
The IFC representative office told the agency that the debut issue of bonds would be repaid in 2020.
