IFC and OTP Leasing have launched a €50 million risk-sharing facility (RSF) in Ukraine to expand financing for small and medium enterprises (SMEs) and midcap companies. The initiative targets sectors including agriculture, manufacturing, trade, energy, and logistics, with a strong focus on sustainable energy solutions to enhance the country’s energy resilience. The program also aims to support climate-smart agriculture, small-scale renewable energy generation, energy-efficient projects, and green vehicles.
Ukraine’s private sector has been severely affected by Russia’s invasion, with significant losses in productive capacity due to supply chain disruptions, power outages, and labor shortages. Corporate credit has fallen from 12.8 percent of GDP in 2021 to 9.2 percent in 2024, while the leasing sector—an important alternative to traditional credit—contracted sharply by 59.4 percent in 2022. Nearly two-thirds of the country’s energy generation capacity has been lost, highlighting the urgent need for resilient, decentralized power systems.
Under the RSF, IFC will assume up to 50 percent of the credit risk, with a maximum exposure of €25 million. A 10 percent capital expenditure buydown mechanism incentivizes lessees to adopt sustainable solutions over conventional, more polluting alternatives. This support is provided through IFC’s Economic Resilience Action (ERA) Program for Ukraine, which is partially funded by the United Kingdom’s Foreign, Commonwealth & Development Office.
The facility is expected to increase OTP Leasing’s ability to provide innovative and sustainable leasing solutions to underserved SMEs and midcaps. It will help businesses invest in sustainable energy, climate-smart agriculture, and energy-efficient projects, thereby strengthening Ukraine’s economic resilience during challenging times. IFC’s RSF program in Ukraine, including this project, is projected to enable around $1 billion in new private-sector financing.
Since February 2022, IFC’s ERA Program for Ukraine has delivered $2.5 billion to support the private sector, including $940 million in mobilized financing. This work forms part of the broader World Bank Group response, which has helped more than 20 million Ukrainians by keeping businesses afloat, enabling essential services, and supporting critical infrastructure repairs during the ongoing conflict.
