EBRD and Japan launch new local currency financing facility

• Up to US$ 1 billion available to support local currency financing
• Facility will help clients reduce exposure to foreign exchange risk
• Agreement signed during the EBRD Annual Meeting and Business Forum in Riga

The European Bank for Reconstruction and Development (EBRD) and the Japan International Cooperation Agency (JICA) have launched a new facility of up to US$ 1 billion designed to expand local currency financing across the EBRD regions.

The agreement establishing the Japan-EBRD Initiative for Development Acceleration and Inclusion (JIDAI) Special Fund was signed during the EBRD’s 2026 Annual Meeting and Business Forum in Riga. It highlights the longstanding partnership between the EBRD and JICA and their shared commitment to supporting sustainable economic development.

The JIDAI Special Fund will support local currency lending and investment operations, helping businesses and public-sector entities reduce exposure to foreign exchange risk while improving access to long-term financing. The facility is expected to support investments in areas including sustainable infrastructure, renewable energy, climate adaptation, water and sanitation, healthcare, digital connectivity and financial inclusion.

Burkhard Kübel-Sorger, EBRD Vice President and Chief Financial Officer, said: “Access to stable and affordable local currency financing is essential for sustainable investment and economic resilience. The launch of the JIDAI Special Fund marks an important milestone in our partnership with JICA and will enable us to expand support for clients across our regions.”

Shoei Hara, Senior Vice President at JICA, said: "The JIDAl Special Fund demonstrates JICA’s continued commitment to supporting sustainable development and economic inclusion through innovative financial partnerships. By combining JICA's development finance resources with the EBRD's local market expertise, we aim to create lasting development impact where it is needed most."

The EBRD is a leading provider of local currency financing. The new facility will further strengthen the Bank’s ability to meet growing demand for local currency financing and support the development of deeper and more resilient local capital markets.