Ukrgasbank will provide financing in the amount of UAH 60 million to the Promprylad.Renovation innovation center
State-owned Ukrgasbank will provide a loan in the amount of UAH 60 million to complete the second stage of the reconstruction of the plant’s territory as part of the Promprylad.Renovation project. The loan agreement will be concluded under the 5-7-9% Affordable Loans program.
The relocation of 12 new businesses and teams to Promprylad revealed that the project has sufficient potential to accommodate new companies and create a significant number of additional jobs. Now the main goal is to speed up the reconstruction process and put into operation 17 to 24k sq.m of the plant’s territory. Financial support from Ukrgasbank plays an important role in the implementation of this plan, which is especially important in the context of relocating businesses to the west of Ukraine and supporting the domestic economy.
‘It is obvious that the war is one of the biggest challenges both for the entire state and for our economy in particular. Under the circumstances, the economic front is one of the most important ones, as it provides the foundation for our further struggle. It is clear that at such moments, the usual peacetime financing tools mostly vanish, although they are now no less and, in some cases, more important, than in peacetime.’
‘Thanks to Ukrgasbank and the 5-7-9% state business development program with zero rate during the war, we managed to find the support, which allows us to develop further and create additional jobs to strengthen the economy at this time. During the war, this is especially important for entrepreneurs who have involuntarily found themselves in the west of the country.’
We are sure that this is just the beginning of a long and fruitful cooperation with Ukrgasbank on the way to the implementation of the full scale of the project,’ says Yuriy Fylyuk, the initiator and head of the Promprylad.Renovation project.
The plans for the second phase of construction involve opening a food market, a craft brewery, offices of innovative companies, an art center, a gym, and shops at Promprylad. In total, since the start of its implementation, the project has attracted $13.1 million from 1,270 private investors and companies from Ukraine and 20 countries around the world. This is a successful case of impact investing, which is unique for Ukraine, since it is not only about profit, but also about beneficial social influence. According to the methodology proposed by PACT, it was calculated that every dollar invested would create $5 in social impact.
From the very beginning of the full-scale war, the Promprylad.Renovation project together with its partners launched the Save Business Now platform, a support center for Ukrainian business in Ivano-Frankivsk and the region. This initiative helped 47 companies relocate and resume operations, and some of them were placed directly at Promprylad. The need to develop additional infrastructure is urgent, so financing from Ukrgasbank is a significant step forward in the development of the project.
The 5-7-9% Affordable Loans program provides a loan to any Ukrainian business at 0% rate during the martial law period and for a month after its end. After that, until the end of the credit agreement, the loan rate will be 5%.
Currently, Ukrgasbank is the leader among the 42 banks participating in the program in terms of the number of loans issued. In total, as of August 29, 2022, the state bank concluded 3,180 5-7-9% deals worth UAH 11.7 billion, UAH 1.9 billion of which are investment projects.
‘Ukrgazbank was the first bank to sign an agreement on cooperation with the Entrepreneurship Development Fund within the 5-7-9% Affordable Loans State Program and is generally one of its most active participants. The war period was no exception.’
‘Understanding the key role of state banks in supporting the country’s economy during the war, Ukrgasbank did not stop lending to the real sector for a single day. We finance the agricultural sector and its related industries, critical infrastructure enterprises, food industry, food retail, creation of new production facilities, etc.’
‘We also introduced a number of special products, combining them into the Ukrainian Business Support Program. They provide for the financing of business relocation for entrepreneurs to safer regions; new equipment for restoration or modernization of production; export contracts in cooperation with the Export Credit Agency for those businesses that export or are looking for opportunities to expand sales of their products on foreign markets.’
‘So, our participation in the Promprylad.Renovation investment project is another effective step of Ukrgasbank to support business and the country’s economy in this extremely difficult period,’ said Denys Chernyshov, the Deputy Chairman of the Board of Ukrgasbank.
Promprylad. Renovation is an innovation center on the premises of the old Promprylad plant in the center of Ivano-Frankivsk. The total area of the object is over 40k sq.m. The project involves the gradual reconstruction of the territory as investments are attracted. The resumption of construction of the next 17k sq.m, the appearance of new residents at Promprylad during the war and the trust of banking institutions in the project are markers that inspire confidence in the development of the innovation center, and also lay the foundation for a strong economy, which is extremely necessary for post-war reconstruction.