EBRD extends new guarantee to Credit Agricole Ukraine to unlock €150 million of business finance

Supported by France and the EU, facility will boost financing for critical industries and energy investments.

The European Bank for Reconstruction and Development (EBRD) is extending a new portfolio risk-sharing facility to Credit Agricole Ukraine, to enable €150 million in new lending to Ukrainian borrowers amid Russia’s ongoing war on the country. The EBRD’s unfunded guarantee will partially cover Credit Agricole’s credit risk on newly issued sub-loans, enhancing its capacity to provide much-needed funding to private businesses amidst the challenging war environment.

Backed by the EBRD’s guarantee, Credit Agricole will lend a total of €150 million to businesses operating in critical industries as well as MSMEs and mid-cap companies investing in energy generation, energy storage and energy efficiency projects.

This is the third portfolio risk-sharing facility that the EBRD has provided to Credit Agricole Ukraine since the start of Russia’s full-scale invasion of Ukraine.

“We have a long-standing partnership with the EBRD and share the same vision — investing in resilience and sustainable development. This new facility will boost financing for critical industries and energy independence. At a time when Ukraine is facing a severe energy crisis, such support is crucial both for our clients and for the country. Together with the EBRD, we are helping businesses recover, strengthen and reduce their dependence on external risks — fully in line with our AIR strategy: Aim is to Invest in Recovery,” said Carlos de Cordoue, Chairman of the Management Board of Credit Agricole Ukraine

The new facility – similar to previous instruments – will also enhance the competitiveness of micro, small and medium-sized enterprises (MSMEs) in Ukraine.

Credit Agricole will lend €30 million – or twenty per cent of the sub loans covered by the EBRD guarantee – to MSMEs for long-term investments in EU-compliant and green technologies, improving their competitiveness on domestic and foreign markets.

Eligible sub-borrowers will also receive EU-funded technical assistance and investment incentives such as grants on completion of their investment projects under the bloc’s EU4Business initiative. Higher levels of incentives will be provided for businesses and households most affected by the war (such as those experiencing asset destruction, loss or relocation), as well as for sub-borrowers, facilitating the reintegration into the workforce of war veterans, people living with disabilities, internally displaced persons and/or those located in territories most acutely affected by the war.

The EBRD has already allocated €75.4 million of EU grant support to Ukrainian MSMEs under the EU4Business-EBRD Credit Line, of which €2.25 million has been issued to projects through Credit Agricole.

Overall, the EBRD has enabled close to €3.29 billion of finance for Ukrainian borrowers through 40 similar facilities with 12 partner financial institutions since the start of Russia’s full-scale invasion.

The EBRD facilities will be backed by partial first-loss risk cover from France and the EU under its Ukraine Investment Framework.

Credit Agricole Ukraine is part of the Crédit Agricole Group (France). Since 2023, Credit Agricole Ukraine has been included in the National Bank of Ukraine’s list of systemically important banks, which indicates the importance of Credit Agricole for the Ukrainian economy.

The EBRD is Ukraine’s largest institutional lender and has significantly increased its lending to the country in recent years, making more than €8.5 billion available since the start of Russia’s full-scale invasion. The Bank has also secured agreement from its shareholders for a capital increase of €4 billion in order to continue lending at this level during wartime, and will increase its lending further when the time comes for reconstruction.