The International Finance Corporation (IFC) from the World Bank Group will enter the capital of a new fund managed by Horizon Capital – Horizon Capital Growth Fund IV (HCGF IV) with a contribution of $30 million, and the European Bank for Reconstruction and Development (EBRD) – with a contribution of $50 million.
According to the information on the corporation’s website, the project has been approved and the relevant documents are awaiting signing, this will be the first IFC investment in Ukraine since the start of a full-scale war that began in February 2022.
The EBRD clarified that its board of directors approved entry into HCGF IV on 6 September.
The target size of the new fund is $250 million. IFC specifies that the fund will invest primarily in fast-growing technology and export-oriented mid-cap companies operating in Ukraine and Moldova and competitive in the global market.
The fund is expected to invest $10-30 million to acquire minority stakes in 10-15 mid-cap companies worth $50-150 million.
According to the materials, HCGF IV is the successor to Emerging Europe Growth Fund III (EEGF III, 2017) and will follow a similar investment strategy focused on IT services and products, as well as e-commerce, innovative consumer products and fintech.
IFC recalls that it invested in EEGF III and EEGF II (2008), while the EBRD was an investor in EEGF III and EEGF II, as well as HCGF II.
IFC’s participation in the fund with equity capital, in an environment where the fund will not be able to raise this money in the market after the start of the war, will be critical to achieving the minimum first close of $100 million, and IFC’s continued participation will allow it to reach the final size of $250 million, the report says.
“This is a landmark event – despite the war, IFC decides to allocate money for investments in Ukraine. This should be a positive signal for other potential investors: you can and should start investing in the Ukrainian economy now,” the First Vice President commented on the IFC decision. Prime Minister of Economy of Ukraine Yulia Sviridenko.
According to the Ministry of Economy, the German Investment and Development Corporation (DEG), the Swiss Investment Fund for Emerging Markets (SIFEM), the Dutch Financial Company for Emerging Markets (FMO), the Western NIS Enterprise Fund, the Rockefeller Foundation are also planning to join the HCGF IV fund. and others.
Horizon Capital is a large investment company that manages five private equity funds (more than 40 institutional investors) with assets of $1.1 billion, including WNISEF (with a capital of $150 million), Emerging Europe Growth Fund (EEGF, $132 million), EEGF II ($370 million) and EEGF III ($200 million), as well as HCGF II ($258.3 million). The resources of these funds are invested in projects in Ukraine and Moldova.
The company currently has two founding partners, CEO Lenna Koszarna and head of investment committee Jeffrey Neal. The company’s offices are located in Kyiv and Chicago.
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).
