Financing the energy sector: what does ‘Pivdenny’ Bank offer?

Many years of experience in financing energy companies has allowed ‘Pivdenny’ Bank, despite massive shelling and blackouts, to strengthen its presence in this market and pay even more attention to companies that provide Ukrainians with light.

Maksym Tsymbal, First Deputy Chairman of the Management Board of ‘Pivdenny’ Bank, spoke about the programs, requirements and key issues of financing energy projects at he Forbes ‘Business Energy’ forum.

Who has the Bank helped so far?

• Companies involved in the development of energy infrastructure to enable Ukraine to join ENTSO-E (the United Energy System of Continental Europe, which allows the Ukrainian energy system to balance at the expense of the European one if necessary), and restoration of damaged energy infrastructure as a result of armed aggression. Since 2022, we have financed projects worth over UAH 700 million.
• Companies that assist in importing electricity – the loan portfolio is UAH 0.25 billion.
• Companies that supply equipment to ensure energy independence of their businesses – the loan portfolio is UAH 0.25 billion.

“We also actively support businesses that want to provide themselves with their own generation and increase the level of energy independence of their business by purchasing petrol and diesel generators, solar power plants, and gas power generating units. In 2023-2024, we financed projects worth about UAH 0.5 billion. In other words, ‘Pivdenny’ Bank's portfolio of completed energy projects totals about UAH 1.7 billion,” said Maksym Tsymbal.

In addition, the Bank is currently considering loan projects worth about UAH 8 billion, of which more than UAH 1 billion is also related to energy independence projects.

"Another important component of Ukraine's energy security is the assistance of international partners. The investment component of the European assistance to Ukraine facility also includes the energy component of the Ukrainian Investment Framework (Pillar II), which will further strengthen the internal processes of protecting and restoring energy security in the near future. However, to accelerate these processes, it is necessary to expand the access of more banks to risk-sharing programmes from international partners (EBRD, EIB, IFC, DFC) operating in the energy sector, in particular banks with private Ukrainian capital," added Maksym Tsymbal.