The European Bank for Reconstruction and Development (EBRD) is investing $ 75 million in Ukrenergo bonds linked to sustainable development, the bank said.
“The European Bank for Reconstruction and Development is investing $75 million in the $825 million sustainability-linked bond issued by Ukraine’s national power company, Ukrenergo, in a bid to resolve the payments crisis gripping the country’s renewable energy sector,” the bank said on its website.
“It is the first sustainability-linked bond issued by a Ukrainian company and the EBRD’s participation as the anchor investor provided comfort to other institutional investors, further widening the market participation. The proceeds will cover all payment arrears owed to renewable energy producers. The investment will help restore the credibility of the Ukrainian renewable energy sector and boost the confidence of private investors and financiers, paving the way for much-needed investment to support the country’s green transition,” the bank said.
“To date, Ukraine’s renewable sector has delivered more than 8.5 GW of clean, local generating capacity, creating jobs and raising tax revenues across the country, while attracting more than EUR11 billion in domestic and foreign investment. Nevertheless, Ukraine needs more renewable energy capacity to meet its decarbonization targets. This transaction will enable the country to continue developing its renewable generation industry. The EBRD is proud to play a key role in resolving the difficult situation in the sector and in helping Ukraine demonstrate the resilience, stability, and predictability of its investment climate,” Matteo Patrone, the EBRD Managing Director for Eastern Europe and the Caucasus, said.
“This is a landmark bond in many ways. It addresses the payment crisis in the renewable energy sector; restores renewable energy investors’ confidence in Ukraine; and paves the way for more renewable energy to be developed under competitive auctions or other innovative commercial structures, ultimately delivering substantially cheaper and cleaner electricity for Ukraine in the future,” Grzegorz Zielinski, the EBRD Director, Head of Energy Europe, commented.
“The EBRD is a leading institutional investor in Ukraine. To date, the bank has invested more than 15 billion euros in 505 projects in the country, with a focus on assisting with stabilization, anchoring reforms, strengthening energy efficiency and energy security, and supporting agricultural and industrial projects, as well as smaller businesses. Sustainability is at the heart of the EBRD’s investments,” the document reads.
