Banks start financing energy infrastructure restoration projects for UAH 8.3 billion in 6M

In June-November 2024, banks received applications from businesses for lending energy infrastructure restoration projects for a total amount of UAH 68.6 billion and started financing for UAH 8.3 billion.

This is stated in the NBU report, Ukrainian News Agency reports.

According to a survey of 20 banks on lending business projects for energy infrastructure restoration for the period from June 1 to December 2, 2024, the volume of the gross portfolio of loans for the energy needs of legal entities, taking into account loan repayments, is UAH 5.2 billion.

In particular, in November:

- 307 applications were received for UAH 2.3 billion;

- 197 applications were approved for UAH 3.8 billion;

- 202 loans were granted for a total amount of UAH 2.6 billion.

The total generation capacity financed since June under loans provided to businesses is over 390 MW.

The largest amounts of funds were allocated for the purchase and installation of gas-piston cogeneration units (185 MW), the purchase of diesel and gasoline generators (102 MW), and the construction of solar power plants (102 MW).

Projects are financed in 21 regions of the country. In addition, banks lend to the population. During November, citizens were granted loans for energy needs for a total amount of UAH 129 million, and since June - UAH 547 million.

The volume of the gross portfolio of loans to individuals for the specified purposes is UAH 479 million.

As Ukrainian News Agency earlier reported, 20 banks with a share of over 85% of the sector's net assets signed a memorandum of readiness to finance the restoration of the energy sector in June 2024.

The banks' proposals take into account the needs of different categories of small, medium and large businesses and households. In particular, entrepreneurs can attract financing for projects to build solar, wind or biogas plants, build gas turbine and gas piston power plants, purchase industrial batteries, storage devices, etc.

The base lending rate in accordance with the aforementioned memorandum is from 13.5% per annum (or UIRD3M + 0.5% for the first year of financing, and then no more than UIRD12M + 3%).