Oschadbank finances 100 MW of electricity generation for MSMEs

Oschadbank, as part of supporting Ukrainian business in strengthening energy sustainability, has provided UAH 1.8 billion in financing for micro, small and medium-sized enterprises (MSMEs) over the past 12 months, which ensured the launch of over 100 MW of new electricity generation capacities for Ukrainian enterprises, the bank's press service reported.

As clarified in a press release provided to Energy Reform, the bank received applications for financing energy projects totaling UAH 3.3 billion under the MSME (micro, small, and medium enterprises) segment.

"Oschadbank, together with its partners, provides businesses with access to financing for such projects on the most favorable terms, including grant support. We help businesses not only survive but also grow under the most challenging conditions," commented Natalia Butkova-Vitvitska, a board member of Oschadbank responsible for the MSME segment.

She noted that constant shelling and the deliberate destruction of energy infrastructure by Russia ahead of winter make energy security for businesses not just relevant, but vital. According to her, Ukrainian entrepreneurs are forced to invest in their own power generation, solar panels, and backup energy sources – everything that allows them to operate even during outages or attacks on the energy system.

Oschadbank explained that financing for business energy projects is being implemented in partnership with the European Bank for Reconstruction and Development (EBRD). Under the joint program, entrepreneurs can receive loans with a grant component – the grant covers 10% to 30% of the loan amount, up to EUR 300,000, depending on the sector, including green energy solutions, veteran-owned businesses, and enterprises of internally displaced persons. The maximum loan amount can reach EUR 3 million.

Oschadbank also offers entrepreneurs financing for energy solutions under the state program Affordable Loans 5-7-9%, through which participants can receive up to UAH 150 million for a term of up to 10 years with a personal contribution of at least 20%. Oschadbank noted that it also implements more than 50 partnership programs with energy equipment suppliers, under which clients can obtain financing at an interest rate starting from 0.01% per year, with no limit on the loan amount and a term of up to 10 years. The required personal contribution starts from 0%.