In 2024, Ukrainian banks actively financed energy infrastructure restoration projects

From June to December 2024, Ukrainian banks actively financed energy infrastructure restoration projects, providing businesses with loans totaling UAH 10.5 billion. These funds were allocated for the implementation of projects that will help restore the country's energy capacity after the devastating consequences of the war.

In total, banks received 3,495 applications from businesses for UAH 72.8 billion, which confirms the high demand for financing in this sector. According to the results of a survey of 20 banks participating in the program, as of early January 2025, the gross portfolio of loans for the energy needs of legal entities, including repayments, amounted to UAH 6.6 billion.

In December 2024, businesses submitted 261 applications for financing worth UAH 4.3 billion, of which 150 applications for a total of UAH 2.5 billion were approved by banks. This indicates a steady increase in the number of loans provided, in particular compared to November, when UAH 2.2 billion was financed for 198 applications.

By mid-winter 2024, the total capacity of energy facilities financed under these projects exceeded 470 MW. The largest amount of funds was directed to the development of gas-fired cogeneration plants, which amounted to 208 MW, as well as to the construction of solar power plants (141 MW) and the purchase of diesel and gasoline generators (118 MW).

Energy infrastructure restoration projects cover 21 regions of Ukraine, which demonstrates a wide geography of financing. In addition to businesses, citizens who need energy support for their households are also actively being loaned.

In December 2024, 594 loans were issued to citizens for a total of UAH 110 million, and since June, the total amount of loans provided for the energy needs of the population is UAH 657 million. The gross portfolio of such loans, including repayments, as of the beginning of January 2025 was UAH 567 million.

According to the memorandum signed by 20 banks in June 2024 with the assistance of the National Bank, institutions finance the restoration of energy infrastructure on favorable terms. The base lending rate for enterprises and households is from 13.5% per annum, which makes financing accessible to small, medium and large businesses, as well as individuals.