EFSE launches sub-fund to support the reconstruction of Ukraine

The European Fund for Southeast Europe (EFSE), advised by Finance in Motion, is launching a dedicated blended finance investment vehicle, the Ukraine Sub-Fund (USF), to contribute to the recovery and reconstruction of Ukraine. At the recent Ukraine Recovery Conference, held on 11 and 12 June in Berlin, the EU pledged €55 million to the USF.

“The dedicated sub-fund allows EFSE to play an active role in Ukraine even in exceptionally challenging times. With over 100 million in first-loss capital, the sub-fund provides an excellent platform to attract additional institutional investors interested in investing in Ukraine’s recovery and reconstruction,” Andrea Hagmann, EFSE Board Chairperson, said.

EFSE has been active in Ukraine for over 10 years facilitating loans in total volumes of more than €360 million to more than 3,500 Ukrainian businesses and a further €4.5 million in technical assistance and small business grants.

“EFSE has been one of the key local currency debt providers to the financial sector in Ukraine with nearly 90% of facilitated MSME financing being in local currency,” says a press release by EFSE. “The new sub-fund will leverage existing EFSE’s experience and relationships in the Ukrainian financial sector to deliver tailored local currency financing solutions for MSMEs. This is the most important starting point for strengthening Ukraine’s economy and making it resilient.”

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Press release