The European Bank for Reconstruction and Development (EBRD) plans to provide NEC Ukrenergo with a state-guaranteed loan of up to EUR90 million for the reconstruction of selected substations in the country.
“It is expected that the loan, if possible, will be co-financed by investment grants from international donors totaling up to EUR60 million for the purchase of reserve stocks of electrical equipment and equipment for inter-system connections,” the bank said in a statement on its website.
The project is currently awaiting approval by the bank’s board.
As explained by the EBRD, the goal of the project, with a total cost of EUR 150 million (EUR 90 million + EUR 60 million), is to increase the resilience of the power transmission system in the face of constant attacks to ensure uninterrupted power supply to the population and businesses throughout the country.
In particular, the current loan will be used to reconstruct three existing substations and complete the construction of one new substation in Ukraine, which was started as part of a project financed by the bank in 2014.
The reconstruction of the three existing substations and the completion of the new substation will be carried out in accordance with international best practice, using equipment that meets EU requirements. Some of the damaged or destroyed equipment will be replaced.
Currently, the new substation with 330 kV overhead power lines is being built at the stage of already laid foundations using EBRD loan funds saved as part of the project to build the 750 kV Zaporizhzhya NPP – Kakhovka power line.
As the EBRD recalled, since February 2022, the bank has provided Ukrenergo with three loans as part of its ongoing support, including emergency capital support and emergency investments aimed at restoring the power transmission network after serious damage caused by the Russian military invasion of Ukraine.
According to the EBRD, Ukrenergo has provided the bank with satisfactory reporting on these loans, as well as generally satisfactory reporting in the past. It has the national capacity to implement the bank’s environmental and social requirements (ESR), as well as national and European legislation. The company is strengthening its ESG management system, including inclusive measures, to help it report on sustainability issues in the future in accordance with the EU Corporate Sustainability Reporting Directive (CSRD).
As reported with reference to Maxim Khlapuk, a member of the Verkhovna Rada’s energy committee, as of June 2025, the total amount of credit funds under agreements between Ukrenergo and the EBRD, as well as the European Investment Bank (EIB), amounted to EUR1.22 billion, of which EUR 215.5 million remained unutilized, and with the International Bank for Reconstruction and Development (IBRD) – $509.74 million, of which $54.87 million remained unutilized.
In addition, under two grant agreements between Ukraine and the IBRD for EUR 37.7 million and $200 million, EUR 18.9 million and $134.5 million remained unutilized, respectively.
EBRD, LOAN, POWER GRID, RECONSTRUCTION, SUBSTATION, UKRENERGO
The European Bank for Reconstruction and Development (EBRD) may provide Bank Lviv with an unsecured loan in hryvnia for up to EUR 40 million and guarantees for EUR 31.5 million to cover the credit risk on new loans to the Ukrainian bank for a total amount equivalent to EUR 45 million.
According to the EBRD website, its Board of Directors plans to consider the relevant projects at its meeting on October 22 this year.
According to published materials, the loan is planned to be provided in four equal tranches of EUR 10 million each. It will consist of two components: at least 75% under the EBRD’s Resilience and Livelihoods Program and up to 25% under the EU4Business-EBRD Credit Line with incentives to finance long-term capital investments by MSMEs.
As for the guarantee project, unlike most similar projects with larger banks, it covers 70% of the risk, rather than the usual 50%. It is noted that the mechanism will include two sub-limits with a covered portfolio: EUR 36 million under the Sustainability and Livelihoods Guarantee product and EUR 9 million under the EU4Business-EBRD credit line with incentives.
The EBRD notes that Bank Lviv is a regional bank focused on MSMEs operating in western Ukraine, with total assets of EUR 333 million (0.5% of the market, ranked 23rd among 60 banks) and a loan portfolio (mainly SMEs) of approximately EUR 212 million as of the end of the second quarter of 2025 (1.2% of the market). Bank Lviv has its head office in Lviv and 20 branches.
The European Bank for Reconstruction and Development (EBRD) will provide a long-term secured loan of EUR11 million to Karpatski Mineralni Vody LLC (KMV) from the group of the same name to finance the construction and commissioning of a new beverage production plant with an effective capacity of 200 million bottles per year in the Lviv region.
“The use of modern equipment at the new plant will significantly increase resource efficiency compared to the existing plant. The project will increase the Group’s competitiveness, production efficiency, and environmental performance,” the bank said on its website.
According to the information, the EBRD Board of Directors approved the loan on August 5, and the next step will be the signing of the necessary documents.
It is noted that the total cost of the project is EUR24 million.
KMV LLC is a manufacturing company of the KMV Group, one of Ukraine’s leading producers of non-alcoholic beverages, producing mineral water, flavored mineral water, other non-alcoholic and energy drinks, as well as snacks, the EBRD noted.
According to the project, the group will have to conduct a comprehensive hydrogeological study during the first three years of operation to assess the permissible volume of water intake for the future, as well as ensure automatic monitoring of water intake and groundwater levels at its wells.
The project provides for a first loss guarantee provided by the European Union through the Ukraine Investment Framework (UIF), and the costs of external pre-investment legal and environmental and social analysis will be partially covered by the Japan-EBRD Cooperation Fund.
In addition, KMV is expected to receive a grant under the EBRD’s Human Capital Investment Incentive (HCII) program to cover up to 50% of eligible costs related to improving workplace accessibility and upgrading equipment and infrastructure. It is expected that the grant funds will be allocated from the Japan-EBRD Cooperation Fund or provided by a Taiwanese donor. The project is also expected to receive a FINTECC grant under the EU4Climate program for the purchase of energy-efficient bottling equipment.
According to data from YouControl, KMV LLC increased its revenue by almost 2.3 times in the first half of 2025, to UAH 277.20 million, and its net profit by 8.2 times, to UAH 140.69 million.
The beneficiaries of the company are listed as Serhiy Petrovych and Petro Ivanovych Ustenko, who own 83.77% and 16.23%, respectively.
The revenue of Serhiy Ustenko’s KMV Trading House LLC for the first half of this year increased by 18.5% to UAH 1 billion 71.47 million, while net profit decreased 2.4 times to UAH 61.17 million.
According to the Karpatski Mineralni Vody website, the company began operating in the mineral water market in 1996 with the first bottling of Karpatskaya Dzherelna natural mineral table water, and in June 2002, it was reorganized into a plant for the production of mineral water and non-alcoholic beverages, Karpatski Mineralni Vody. In 2002, the company began producing sweet carbonated beverages under the TM “Fruktova Dzherelna” and TM ‘Sokovinka’ brands, and in 2016, the energy drink TM “Dragon”.
Ukraine and the International Bank for Reconstruction and Development have signed an agreement on a $246.5 million loan under the SURGE program “Supporting Recovery through Sound Fiscal Management,” the Ministry of Finance reported on Saturday.
“It is planned that by the end of 2025, $229.7 million will be allocated to the general fund of the state budget. Part of the loan, amounting to $16.8 million, will be used to capitalize interest in order to reduce the cost of servicing Ukraine’s credit obligations in the coming years,” the Ministry of Finance specified.
The project aims to support the Ukrainian government’s efforts to create an effective public investment management system in the context of post-war recovery and reconstruction, improve fiscal management at the local level, improve medium-term and program budgeting at the local level, and administer revenues, according to the release.
According to the release, the funds will be drawn from the Target Fund for Providing Ukraine with Necessary Credit Support (ADVANCE Ukraine), which is supported by the Japanese government. The agreement was signed by Finance Minister Serhiy Marchenko on behalf of Ukraine and Bob Som, Regional Director for Eastern Europe, on behalf of the World Bank.
The SURGE project has been implemented in Ukraine since 2024. During this time, the World Bank has signed agreements with Ukraine for $760 million in financing under the project, including $10 million in grant funds. It is being implemented using the Program-for-Results (PforR) financial instrument, which is based on the achievement of specific indicators linked to payments.
Dniprometiz-TAS LLC (Dnipro), owned by Ukrainian businessman Serhiy Tihipko, intends to conclude a general loan agreement with Ukreximbank (Kyiv) with a credit limit equivalent to UAH 600 million.
According to the company’s report in the NSSMC’s information disclosure system, the general meeting of Dniprometiz-TAS LLC participants on September 4, 2025, decided to grant consent for the company to perform transactions that collectively meet the criteria of a significant transaction, namely, the conclusion of a general credit agreement with JSC Ukreximbank with a credit transaction limit equivalent to UAH 600 million.
It is specified that within the framework of the general credit agreement, it is planned to conclude two credit agreements: on opening a revolving multi-currency credit line with a limit equivalent to EUR 4.1 million and on opening a non-revolving credit line with a limit of EUR 2.5 million.
Consent was also given to the general agreement on the provision of guarantees/counter-guarantees/standby letters of credit, with a limit on guarantee transactions equivalent to UAH 30 million, i.e., a total amount (limit) equivalent to UAH 630 million.
The meeting was attended by company participants who collectively hold 100% of the votes.
As reported, in the first half of 2025, Dniprometiz-TAS increased its net profit by 20.8% compared to the same period last year, to UAH 8.936 million, while net income grew by 8%, to UAH 1 billion 756.245 million.
In 2024, Dniprometiz-TAS increased its net profit by 47.7% compared to 2023, to UAH 14.197 million from UAH 9.610 million, and its net income by 22.7%, to UAH 3 billion 285.688 million. At the same time, the company’s undistributed profit at the end of 2024 amounted to UAH 263.048 million.
Dniprometiz-TAS manufactures metal products from low-carbon steels. The company’s capacity is 120,000 tons of products per year.
T.A.S. Overseas Investments Limited (Cyprus) owns a 98.6578% stake in Dniprometiz LLC.
The authorized capital of Dniprometiz-TAS LLC is UAH 83.480 million.
State-owned Oschadbank, Ukrgasbank, and Ukreximbank (all based in Kyiv) provided Ukrainian cities with 10 loans totaling UAH 3.0 billion in the second quarter of 2025, according to information from the Ministry of Finance.
According to the information, Ukrgasbank issued the largest number of loans – seven loans totaling UAH 1.93 billion.
Lviv received the largest loan from the bank in the amount of UAH 650.5 million.
The interest rate for the first year is 16.15% per annum, and from the second year onwards, the rate is variable based on the indicative UIRD 12M rate + 3.02% margin (calculation: 16.15% – 13.13% UIRD 12M on the date of the agreement). The interest rate is reviewed annually but cannot exceed 22%. The loan term is 60 months, with a grace period of 24 months.
Dnipro received two loans from the aforementioned bank for a total amount of UAH 543.1 million.
The first loan is for UAH 333.1 million with an interest rate of 15.5% in the first year, followed by a variable UIRD 12M + 3% with annual review, but not exceeding 23%. The loan term is 36 months, with a grace period of 12 months.
The second loan is for UAH 210.0 million, with an interest rate of 16.15% in the first year from the second year – variable UIRD 12M + 3.03% (calculation: 16.15% – 13.12% UIRD 12M on the date of the agreement), maximum – 23%, term – 36 months, grace period – 12 months.
Kryvyi Rih has attracted two loans from Ukrgasbank for a total amount of UAH 394.3 million.
The first loan is for UAH 217.6 million, and the second is for UAH 176.7 million.
Both loans have a fixed rate of 15.5% in the first year, followed by a variable rate of UIRD 12M + 3% with annual review, but not exceeding 23%. The loan term is 84 months, with a grace period of 18 months.
Zaporizhia also received a loan of UAH 300.0 million. In the first year, the rate is 15.5%, and from the second year, a variable rate based on UIRD 12M + 3% with a limit of no more than 23%. The term is 84 months, with a grace period of 18 months.
In addition, the village of Kolchino in Zakarpattia received a loan of UAH 50.0 million. In the first year, the rate is 16.15%, then a variable rate of UIRD 12M + 3.03% (based on 16.15% – 13.12% UIRD 12M on the date of the agreement), with a limit of 23%. The loan is provided for a term of 36 months.
Oschadbank issued two loans totaling UAH 968.0 million. The first loan was received by Lviv – UAH 668.0 million, with an interest rate of 16.15% in the first year from the second year, variable UIRD 12M + 3.02% margin (16.15% – 13.13% (UIRD 12M on the day preceding the date of the agreement) with annual review, but not more than 22% for 60 months, grace period – 24 months.
The second loan was received by Dnipro – UAH 300.0 million first year – 16.1% per annum, from the second year – variable UIRD 12M +2.98% margin (16.1% – 13.12% (UIRD 12M on the day preceding the date of the agreement), but not exceeding 22% for 60 months, with a grace period of 12 months.
In turn, Oschadbank provided two loans to Lviv and Dnipro for a total amount of UAH 968.0 million.
Lviv received a loan of UAH 668.0 million. The interest rate for the first year is 16.15% per annum. Starting from the second year, a variable rate will apply: indicative UIRD 12M + margin 3.02% (calculated based on the UIRD 12M level of 13.13% on the day preceding the conclusion of the agreement). The rate is reviewed annually but will not exceed 22%. The term is 60 months, with a grace period of 24 months.
Dnipro received a loan of UAH 300.0 million. In the first year, the rate is 16.1% per annum. From the second year, the rate will be variable UIRD 12M + margin of 2.98% (with a base UIRD 12M of 13.12% at the time of signing the agreement). The maximum rate is capped at 22%. The loan term is 60 months, with a grace period of 12 months.
Ukreximbank provided a loan of EUR 1.8 million (approximately UAH 87.7 million) to Sokil in the Lviv region. The rate is variable: based on the indicative EURIBOR 6M rate plus a margin of 4.24% (at the date of the agreement, this amounted to 6.3% – 2.06% EURIBOR 6M). The maximum rate is capped at 8% per annum. The loan term is 60 months, with a grace period of 12 months.
