The International Finance Corporation (IFC), part of the World Bank Group, has decided to invest $25 million in the Rebuild Ukraine Fund LP (REBUF), established by the Ukrainian investment company Dragon Capital in 2024. This private equity fund is aimed at supporting small and medium-sized enterprises, with a target size of $250 million.
This is reported by Business • Media
Investment Focus and Fund Structure
The Rebuild Ukraine Fund will direct investments into companies operating in the consumer goods and services, healthcare, pharmaceuticals, financial services, agribusiness, construction materials, retail, and technology sectors. Through these investments, the fund aims to strengthen economic resilience and contribute to the recovery of key sectors of the Ukrainian economy.
Investment Terms and Key Participants
IFC will act as an anchor investor with a partial guarantee covering the first losses of 50% of the investment amount. This guarantee is provided by the French government and other international guarantors. The corporation emphasizes that this investment is critically important for achieving the first closing of the fund, as attracting private capital during wartime remains a challenging task.
“Since the full-scale invasion of Russia into Ukraine, IFC has supported only one similar fund – Horizon Capital Growth Fund IV ($350 million). According to IFC’s forecasts, REBUF will also be primarily funded by development finance institutions (DFIs).”
In addition to IFC, Dragon Capital itself is investing $20 million of its own funds, while the European Bank for Reconstruction and Development (EBRD) has agreed to contribute another $25 million. This financial support allows the Rebuild Ukraine Fund to become one of the key platforms for investment in the recovery of the Ukrainian economy.