Banks start financing energy infrastructure restoration projects for UAH 13.2 billion in 8 months

From June 1, 2024 to February 2, 2025, banks received 3,685 applications from businesses for lending to energy infrastructure restoration projects for a total of UAH 75 billion and began financing projects (granted loans and opened limits) for UAH 13.2 billion.

The NBU has said this in a statement, the Ukrainian News agency reports.

According to a survey of 20 banks on lending to business projects to restore energy infrastructure, the volume of the gross portfolio of loans for energy needs of legal entities, taking into account repayments as of the beginning of February, is UAH 7.1 billion.

In particular, according to the survey, in January:

- 190 applications were received from businesses for a total of UAH 2.1 billion;

- 70 applications were approved for a total of UAH 2.2 billion;

- 125 loans were granted for a total of UAH 2.7 billion.

The total generation capacity financed since June by loans provided to businesses is over 530 MW.

The largest amounts of funds were allocated for the purchase and installation of gas-piston cogeneration plants (215 MW), the construction of solar power plants (151 MW), and the purchase of diesel and gasoline generators (122 MW).

Projects are financed in 21 regions of the country.

In addition, banks also lend to the population.

During January, 438 loans for energy needs were granted to citizens for the amount of UAH 74 million, and in total since June - 5,708 loans for the amount of UAH 731 million.

The volume of the gross portfolio of loans to individuals for the above purposes, taking into account repayments, is UAH 624 million.

As the 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 various 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%).