The Russian invasion has had a major negative impact on Ukraine’s economy and business. Many companies in eastern and southern Ukraine have been forced to close. Consequently, the production has been partially or fully relocated to or taken over by other companies in the Western part of the country, which is less affected by the war.
Common to all companies is that they need financing to re-establish or expand and develop production facilities in Western Ukraine. But risk-capital is scarce and that holds back companies from investing in facilities and technology that can increase production, employment and exports, which are crucial for economic development and the ability for Ukraine to build back better.
Therefore, Impact Fund Denmark has invested EUR 7 million in Bank Lviv that is providing targeted financing to small and medium-sized companies and serves around 45,000 customers within areas such as manufacturing, trade and agribusiness.
We are very pleased to support Bank Lviv. The debt financing is important as it will improve the bank’s ability to offer financing to small and medium-sized companies, which have a great need for capital and play a significant role in the economic and social reconstruction of the country.
A bank with ambitions for a green and equal future
Bank Lviv contributes to both the green transition and gender equality. It is one of a few banks in Ukraine that has green ambitions for the future with an ambition to be able to classify 15 per cent of their financing as green by 2028. At the same time, the bank provides loans to companies based on a policy that everyone, especially women, should have access to decent jobs.
The bank’s profile and objectives are in perfect line with Impact Fund Denmark’s strategy to focus on investments that support the green transition and promote gender equality, which is another good reason to invest in Bank Lviv.