The European Investment Bank will finance projects of Oschad's clients for €50 million under the Ukraine Facility program

Oschadbank has signed a finance contract with the European Investment Bank (EIB) to provide a €50 million credit line under the Ukraine Investment Framework, which is a component of the Ukraine Facility, the EU's flagship programme to support Ukraine's recovery. The signing took place on July 10 during the Ukraine Recovery Conference (URC) in Rome.

The contract will help ensure that Ukrainian municipalities, communal companies and public authorities have access to long-term financing for critical district heating and energy efficiency projects.

The finance package includes a €50 million credit line, which Oschadbank can access in tranches, and a €30 million grant component dedicated to vulnerable communities and regions. The grant will be distributed by Oschadbank and two other participating banks to the eligible clients on a first-come, first-served basis.

"The agreement with the European Investment Bank is a strategic partnership that paves the way for the implementation of important infrastructure projects in Ukrainian communities. We are launching a new loan program that combines long-term financing with grant support, and this will make it possible to raise funds on favorable terms without the need for a government guarantee. Oschad is the No. 1 bank in lending to municipalities, and the signed agreement will allow us to further strengthen this position," commented Sergii Naumov, Chairman of the Management Board of Oschadbank.

The EIB funding can be allocated to subprojects with investment costs ranging from €40 thousand to €25 million.

The terms of the contract also include technical assistance for Oschadbank and the final beneficiaries. The EIB engages experts to build capacity for the 3 participating banks and help to assess projects, and the United Nations Development Program (UNDP) to support project preparation and implementation at the community level.

The signing of this agreement was made possible thanks to Oschad's faithful fulfilment of its previous obligations to the EIB and other international partners.