LUXEMBOURG – The European Investment Bank (EIB) has taken a significant step to bolster small and medium-sized enterprises (SMEs) in Ukraine and Moldova amidst ongoing regional challenges. The EU for Ukraine Fund, managed by the EIB, has finalized its inaugural financing project by committing €25 million to Horizon Capital Growth Fund IV (HCGF IV), which is managed by Horizon Capital.
This investment marks the first tranche of a broader EU for Ukraine initiative that has garnered over €400 million in backing from EU member states.
The funding aims to strengthen SMEs that specialize in technology and exports, vital sectors that can drive economic stability and growth in both Ukraine and Moldova. The decision for this initial investment was made during the Contributors’ Committee meeting led by EIB Vice-President Teresa Czerwińska.
Horizon Capital, a leading private equity firm active in Ukraine, will manage the HCGF IV with a keen focus on various sectors including IT services/products, e-commerce, innovative retail/consumer goods, and fintech. The fund seeks to raise at least €274 million for investments that can provide a substantial boost to the regional economy.
The EIB’s commitment to Ukraine is part of a larger response to the challenges following Russia’s invasion in 2022. Since then, the EIB has allocated €1.7 billion for emergency infrastructure repairs within Ukraine and introduced a €4 billion credit facility designed to aid Ukrainian refugee integration across EU nations.
Vice-President Czerwińska underscored the rapid mobilization of funds as indicative of strong EU support for Ukraine’s economy, emphasizing the importance of such initiatives for maintaining economic stability through SME support during ongoing regional difficulties.
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