Bank Ukrgasbank : Funding from Ukrgasbank to contribute to improvement of energy efficiency and energy independence of LEMBERG battery LLC

Under the UNIDO Loan Guarantee Fund and EU4Business-EBRD credit line, Ukrgasbank has issued a loan to LEMBERG battery LLC in the amount of UAH 19 million for the implementation of an energy efficiency investment project.

The main activity of LEMBERG battery LLC is recycling of old car batteries followed by the production of quality lead and new batteries. The company's products meet quality criteria and are sold both in Ukraine and EU countries.

LEMBERG battery LLC will use the provided financing to purchase a line of Italian-made energy-efficient equipment for battery recycling. The purchase of such equipment will make it possible to reduce consumption of electricity and natural gas, improve the efficiency of environmental protection measures, minimize the operational hazards, and create new jobs.

The combination of EU4Business-EBRD credit line and UNIDO Loan Guarantee Fund made it possible to provide the loan financing to LEMBERG battery LLC on attractive terms. It is also an example of successful cooperation of Ukrgasbank with international partners in attracting financing support for Ukrainian enterprises.

The EU4Business-EBRD Credit Line is a joint instrument for financing the competitiveness of small and medium-sized enterprises in the Eastern Partnership, created by the European Bank for Reconstruction and Development (EBRD) in cooperation with the EU. As part of this Program, LEMBERG battery LLC has the opportunity to receive an investment incentive of 15% of the loan amount. The participation in the Program will allow LEMBERG battery LLC to harmonize its production in accordance with EU Directives. The Programme is supported with funding by the European Union under the EU4Business Initiative.

The Loan Guarantee Fund (LGF) is a revolving financial instrument created by UNIDO (United Nations Industrial Development Organization, UNIDO-GEF UKR IEE project) and Ukrgasbank to support provision of credit capital for energy efficiency and energy management system implementation by industrial enterprises. This mechanism is structured as a provision of portfolio guarantee for a loan repayment, which, on behalf of UNIDO, provides the CITI Bank, Ireland, in favor of JSB "Ukrgasbank". The guarantee is used as a security to cover collateral for eligible loans that meet qualification requirements of LGF. This facilitates the companies to the development of energy efficiency projects and implementation of EnMS (Energy management system). Since its launch, LGF has been the first financial mechanism in Ukraine that uses guarantees to improve access and conditions of financing for industrial energy efficiency (IEE). Recently, the terms of the LGF were updated and its operation was extended until the end of 2025.

03.05.2024