Business news from Ukraine

KyivESKO LLC and JSC Commercial Industrial Bank on January 14, 2019 signed a first energy service contract in Ukraine for the amount of around UAH 3 million, using the factoring tool. The Ukrainian Association of Energy Service Companies wrote on its Facebook page that the contract was signed with the technical assistance of the UNDP project and the State Agency for Energy Efficiency and Energy Saving.
The tool allows borrowing without collateralized property, the association said. The guarantee for the loan would be money flows from energy service contracts, which KyivESKO LLC has.
In August 2018, specialists of the State Agency for Energy Efficiency and Energy Saving and experts of the UNDP project studied various models of using energy service mechanisms in European countries, in particular in Latvia, where two funds for the energy service purposes using the factoring tool were created with the help of the financing from the European Bank for Reconstruction and Development (EBRD) and public funds.
The implementation of the firsts factoring contract in the energy service area would allow other companies and financial institutions to use this experience, the association said.
KyivESKO LLC signed its first energy service contract in the housing sphere with Politekhnik housing and construction cooperative in Kyiv.