Oschadbank has financed 100 MW of electricity generation for MSMEs this year

Oschadbank continues to support Ukrainian businesses in strengthening their energy sustainability. Over the past 12 months, within the framework of micro, small, and medium-sized businesses (MSMEs), the bank has received applications for UAH 3.3 billion to finance energy projects, of which UAH 1.8 billion has already been provided, ensuring the launch of more than 100 MW of new electricity generation capacity for enterprises across the country.

“Constant shelling and deliberate destruction of energy infrastructure by Russia on the eve of winter make the issue of energy security for businesses not just relevant, but a matter of survival. Ukrainian entrepreneurs are forced to invest in their own power generation, solar panels, backup power sources—everything that allows them to continue operating even during power outages or attacks on the power grid. Together with its partners, Oschadbank gives companies access to grant support and other forms of financing for these kinds of projects on the best terms. We help businesses not only survive but also develop in the most difficult conditions," said Natalia Butkova-Vitvitska, member of the Oschadbank Management Board responsible for MSME banking.

On top of other initiatives, financing for energy projects for businesses is provided in partnership with the European Bank for Reconstruction and Development. Under the EU4Business-EBRD Credit Line, MSMEs can obtain loans with a grant component—the grant covers 10% to 30% of the loan amount (but not more than €300,000), depending on the area, in particular for “green” solutions, veteran businesses, and enterprises of internally displaced persons. The maximum loan amount is €3 million. Support is provided under EBRD’s Energy Security Support Facility (ESSF) for projects aimed at energy independence, critical infrastructure development, job creation, and economic recovery. ESSF line with Oschadbank is donor funded by EBRD Crisis Response Special Fund, France and the European Union under its Ukraine Investment Framework.

Oschadbank also offers entrepreneurs attractive financing instruments for energy solutions within the framework of the state program “Affordable Loans 5-7-9%.” The program participants can receive up to UAH 150 million for a term of up to 10 years with their own contribution of 20%. The interest rate ranges from 5% to 9% per annum and depends on the number of jobs created. Equipment purchased with loan funds can be used as collateral. The program gives businesses the opportunity to invest in restoration, modernization of production, and energy efficiency improvements on affordable terms.

In addition, Oschadbank implements more than 50 partnership programs with leading suppliers of energy equipment. Under these programs, customers can obtain financing at a rate of 0.01% per annum with no restrictions on the loan amount for a term of up to 10 years. The own contribution is from 0%, the collateral is the purchased equipment, or, in some cases, the loan is provided without collateral. There is also the possibility of financing related works.

Thanks to these instruments, entrepreneurs can invest in generators, uninterruptible power supply systems, solar panels, biogas and wind power plants, solid fuel boilers, and other equipment that ensures energy independence even in conditions of military risk.