"The two institutions intend to provide up to $50 million each in risk-sharing guarantees, to support the export and import of critical goods. The arrangement builds on a plan drawn up last year by development finance institutions to collaborate on co-investments in Ukraine's private sector," the press release says.
According to the Proparco website, the French agency, together with the DFC, signed a memorandum of understanding during the Ukraine Recovery Conference (URC2024) in Berlin, the purpose of which is to explore risk sharing with the EBRD.
"By announcing its intention to join the EBRD's TFP program, Proparco aims to increase its support for the Ukrainian private sector, as well as for the country's exporters and importers," the company said in a statement.
Proparco is a subsidiary of the Agence Francaise de Developpement (AFD) Group, which focuses on the private sector and sustainable development. Its authorized capital was 1.35 billion euros as of 2023. Proparco operates in 115 countries, its activities are focused on sectors like infrastructure, with the emphasis on renewable energy, agribusiness, financial sector, healthcare and education.
AFD said it would open a representative office in Kyiv on July 1 this year.
"This will be a joint office with Expertise France, a subsidiary of the AFD Group, which is already operating in the country. The AFD Group's goal is to become a permanent partner of Ukraine in the public and private spheres," it said.
AFD plans to provide 400 million euros in loans and 50 million euros in donations by 2027.
The DFC was created in 2019 and is a government agency for development finance. The corporation invests in various sectors, including energy, healthcare, infrastructure, agriculture, small business and financial services.
