The International Finance Corporation (IFC), part of the World Bank Group, along with the European Bank for Reconstruction and Development (EBRD), are each investing $25 million in the Rebuild Ukraine Fund. This fund was established by the Ukrainian investment company Dragon Capital to support the recovery of Ukraine’s economy.
This is reported by Business • Media
Investment Goals and Support for Small and Medium Enterprises
The total investment of $50 million aims to expand access to alternative sources of financing for Ukrainian small and medium enterprises, as well as mid-cap companies. The fund is expected to attract a total of $250 million. The first tranche from IFC and EBRD will serve as an “anchor” investment, facilitating the successful launch of the fund.
“The joint investment of $50 million in the new fund will increase access for Ukrainian SMEs and mid-cap companies to alternative sources of capital for growth,” said a joint statement from IFC and EBRD.
Investment Areas and Capital Protection Mechanisms
The Rebuild Ukraine Fund will direct long-term investments into the capital of Ukrainian companies operating in the retail, services, healthcare, financial services, construction materials manufacturing, and agricultural sectors. The fund aims to stimulate economic growth and recovery in the country following significant challenges.
To mitigate investment risks, part of the IFC’s equity contribution will be secured by guarantees provided by the European Commission under the Ukraine Investment Framework initiative. Additionally, support is provided by the French government as part of the IFC’s “Economic Resilience Action (ERA)” program for Ukraine.