(MENAFN- UkrinForm) The Contributors' Committee of the EU for Ukraine Fund managed by the European investment bank (EIB) has approved the Fund's first project financing of EUR 25 million.
The relevant statement was made by the EIB's press service , an Ukrinform correspondent reports.
“The EU for Ukraine Fund managed by the European Investment Bank (EIB) hosted its initial Contributors' Committee meeting today. The EU Member States participating in the meeting greenlighted the fund's first project financing – an investment of EUR 25 million in Ukraine's equity growth fund Horizon Capital Growth Fund IV (HCGF IV) managed by Horizon Capital, a leading private equity manager in Ukraine,” the report states.
HCGF IV is in the process of raising at least EUR 274 million (USD 300 million) to make growth equity investments, with a focus on tech and export-oriented small and medium-sized enterprises (SMEs) in Ukraine and Moldova.
Backed by institutional investors including the EIB, HCGF IV seeks to enhance the market presence of businesses in Ukraine and Moldova and support their expansion efforts, particularly in sectors such as IT services and products, e-commerce, innovative retail and consumer goods, and fintech.
The EUR 25 million investment in HCGF IV marks the first project of the EU for Ukraine Fund, initiated by the EIB in spring 2023. This fund is part of the broader EU for Ukraine initiative, which aims to quickly address Ukraine's urgent needs and bolster economic stability.
With over EUR 400 million initially committed by 18 EU Member States – Belgium, Bulgaria, Croatia, Cyprus, Denmark, Estonia, France, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, Slovakia, Spain and Sweden – the fund is set to expand with additional contributions. Its primary aim is to support public and private projects, mainly in municipal infrastructure and access to finance for Ukrainian entrepreneurs.
“I am delighted to witness the rapid deployment of our EU for Ukraine Fund, reaffirming our commitment to swift, results-oriented action to support Ukraine. With the contributions of the EU Member States, we are set to immediately support SMEs and the private sector, crucial players in sustaining Ukraine's economy during these challenging times,” EIB Vice-President Teresa Czerwińska, responsible for operations in Ukraine, said.
Since the start of Russia's full-scale invasion, the EIB has allocated EUR 1.7 billion to help finance emergency repairs of Ukraine's ravaged infrastructure. The EU bank also provided a EUR 4 billion credit line to support the integration of refugees from Ukraine in EU countries.
MENAFN04122023000193011044ID1107534773
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.