IFU is investing EUR 7 million in Bank Lviv in the form of subordinated debt. The Bank provides targeted financing to small and medium-sized companies that are crucial for the economic development in Ukraine and the opportunity to build back better in a time of war.
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, IFU invests 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.
“The EUR 7 million in subordinated debt from IFU strengthens our ability to support small and medium-sized enterprises — the backbone of Ukraine’s economy. Our goal is to provide access to financing and foster sustainable development, technological innovation, and integration into international trade. This partnership with IFU is a significant step for Bank Lviv, and together we will help Ukrainian businesses grow, create new jobs and contribute to Ukraine’s economic development”, said Ashot Abrahamyan, Chairman of the Board of Bank Lviv.
“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,” said Oleksii Parkhomchuk, Investment Director, Representative Ukraine at IFU.
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% 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 IFU’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,” said Oleksii Parkhomchuk.
Investment Director
Oleksii Parkhomchuk
+45 33 63 75 97
