IFC Announces Raft of New Initiatives to Bolster Ukraine’s Private Sector at Ukraine Recovery Conference

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• IFC announces its planned support for a landmark telecom project of up to $435 million, to create the country's leading, integrated telecom operator.
• IFC and the EC announce a €367.5 million guarantee to unlock further private sector financing.
• Additional agreements will bolster renewable energy, transport, and trade, and build private sector resilience.

Berlin, Germany, June 11, 2024—IFC is unveiling a series of significant initiatives aimed at supporting Ukraine's private sector and aiding the country's reconstruction efforts at the Ukraine Recovery Conference (URC) in Berlin. These initiatives are currently pending final board approval.

To bolster Ukraine's telecom sector, IFC and the European Bank for Reconstruction and Development (EBRD) are advancing their joint appraisal to support a landmark deal led by NJJ Holding, Horizon Capital, and Datagroup-Volia. The deal will support the merger of Datagroup-Volia, a fixed telecom provider, with Lifecell, the country's fastest-growing mobile operator, to create the country's leading, integrated telecom operator. The potential joint financing of up to $435 million will enable the largest foreign direct investment in Ukraine since the beginning of Russia's invasion.*

IFC and the European Commission (EC) also announced a €367.5 million Better Futures Program: RE-Ukraine guarantee (including technical assistance) to scale up IFC's investments in Ukraine's real sector, making the EC IFC's largest blended finance contributor to Ukraine. Investments under the program by the private sector are expected to reach more than €1 billion across manufacturing and infrastructure, with climate as a cross-cutting focus. The EC's contribution builds on its support announced earlier this year as well as financial support provided to IFC by the UK's FCDO for Ukraine's energy security, the Netherlands and Switzerland for the agricultural sector, and Canada through the Facility for Resilient Food Systems (FRFS).

In the transport sector, IFC is working with the Ukrainian Danube Shipping Company (UDP) to finance its river cargo fleet renovation and modernization program. This program will build resilience and enable increased trade flows via the Danube River. Climate benefits are expected from improving the energy efficiency of the fleet.* This financing builds on an advisory project IFC recently completed with the support from the Austrian Federal Ministry of Finance to diagnose and address key gaps to UDP's access to commercial financing. 

Additionally, to boost energy security and support the development of further renewable energy, IFC has signed mandate letters and is conducting due diligence to mobilize total financing of approximately $345 million for the implementation of 350-megawatts of new wind power energy in Ukraine.*

At URC, IFC also joined the SME Resilience Alliance, launched by the Government of Ukraine to strengthen and support small and medium-sized enterprises by helping to improve the business environment, strengthen institutions, and enhance access to finance. Finally, IFC and Deutsche Bank are announcing the expansion of its trade finance collaboration, focusing on Ukraine. The extended partnership in trade finance will utilize Deutsche Bank's global network and IFC's expertise in the country to enhance access to financing for Ukrainian exporters and importers, thereby facilitating cross border trade and supply of much needed critical goods into the country.

"The private sector's remarkable resilience, alongside support from the international community, has helped Ukraine avoid economic collapse, but continued reforms will be key to fully unlock private sector financing for the reconstruction," said Alfonso Garcia Mora, IFC's Regional Vice President for Europe, Latin America, and the Caribbean. "IFC is committed to bringing in more investment to speed up Ukraine's reconstruction and help the economy grow."

While initially focused on short-term support such as guarantees and liquidity, IFC has shifted towards longer-term financing, including capital investment in key areas such as food production, construction materials, energy, shipping, small and medium enterprises, and digital infrastructure. IFC is also focused on providing de-risking investments to attract more private financing for recovery efforts.

Since February 2022, IFC has committed $1.4 billion in financing to support Ukraine's private sector, with plans to deliver an additional $1.4 billion over the next 12 months. This support is part of the World Bank Group's response package, which has helped more than 15 million Ukrainians through initiatives helping businesses to stay afloat and enabling the government to provide essential services, pay wages, keep schools and hospitals open, and make critical repairs. The WBG has facilitated more than $42 billion in emergency financing, including commitments and pledges from donors.

*These projects are currently undergoing due diligence and are pending IFC management and Board approval. This review encompasses technical, commercial, financial, economic, legal, environmental, and social aspects and adheres to IFC's Sustainability Framework, which includes the Sustainability Policy, Performance Standards, and Access to Information Policy.

About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit lawmoney.ru.

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Better Futures Program - European Fund for Sustainable Development Plus (EFSD+)

The European Fund for Sustainable Development Plus (EFSD+) is part of the European Union's investment framework. It supports public and private investment in partner countries worldwide by providing financial guarantees and technical assistance to promote inclusive economic development. EFSD+ has allocated approximately €300 million in unfunded guarantees and technical assistance to IFC's Better Futures Program, which will build on IFC's experience in mobilizing investment at scale for innovative solutions to climate change, fragility, conflict and crisis response, job creation and inclusive growth.