Lviv, Ukraine, February 22, 2012—IFC,
a member of the World Bank Group, is partnering with Kredobank to help
individual homeowners and homeowner associations in Ukraine make their
properties more energy efficient, aiding the country’s efforts to reduce
green house gas emissions and modernize its housing stock.
The IFC Residential Energy Efficiency
Project in Ukraine will work with Kredobank to develop a new financial
product that will allow homeowner associations to borrow money to make
improvements to their properties. It will also provide training that will
enable the bank to expand its portfolio of energy efficiency loans and
support project developers in preparing for financial transactions. IFC
will also partially finance energy audits for the first borrowers.
“We believe that Ukraine’s housing
sector has great potential for innovative and profitable banking services,”
said Marcin Kuksinowicz, Kredobank’s acting chairman. “We hope that IFC’s
knowledge of the local housing sector, coupled with its global expertise,
will assist us in building a successful presence in this market segment.”
Ukraine’s housing sector consumes around
25 percent of the country’s electricity and 40 percent of its heat-energy
resources. Many homes are old and inefficient, with poorly insulated buildings
losing as much as 50 percent of their heat to the environment. IFC estimates
that modernizing Ukraine’s apartment buildings will require up to $15
“This program will help reduce the
energy intensity of Ukraine’s economy, support better access to finance
for homeowners, and improve their quality of life,” said Elena Voloshina,
IFC’s head of operations in Ukraine. “At the same time, it will target
what has been an underserved segment of the economy – Ukraine’s homeowner
Earlier this month, IFC also partnered
with the government of Ukraine to expand access to finance for homeowner
associations that want to undertake energy efficiency improvements in multi-family
These initiatives are part of IFC’s
Ukraine Residential Energy Efficiency Project. Launched in 2010, it is
being implemented in partnership with Switzerland’s State Secretariat
for Economic Affairs, SECO, which will contribute $3 million to the project
through March 2013.
Over its lifetime, the Residential Energy
Efficiency Project aims to help Ukraine reduce greenhouse gas emissions
by one million tons,
which is equivalent to three days of emissions from electricity consumption.
The project also will help reduce Ukraine’s dependence on imported gas.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, providing advisory services to businesses and
governments, and mobilizing capital in the international financial markets.
In fiscal 2011, amid economic uncertainty across the globe, we helped our
clients create jobs, strengthen environmental performance, and contribute
to their local communities—all while driving our investments to an all-time
high of nearly $19 billion. For more information, visit www.ifc.org.
For more information, visit www.kredobank.com.ua
About the Swiss Confederation in
For more information, visit http://www.swiss-cooperation.admin.ch/ukraine