Ukrenergo Sustainability-Linked Eurobond



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

27 Oct 2021



PSD disclosed:

11 Nov 2021

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Subscription of USD 75 million in USD 825 million 5-year  first Ukrainian Green and Sustainability-Linked Eurobond ("SLB") ever issued by the Ukrainian corporate, "National Power Company "Ukrenergo" (the "Company" or "Ukrenergo"), and backed by a state guarantee (the "Project"). It is the landmark transaction with an innovative structure never used before, and an important benchmark for the Ukrainian market.

Project Objectives

The Project will enable Ukrenergo to channel the SLB proceeds to the State Enterprise " Guaranteed Buyer" (the "Guaranteed Buyer"), which the Guaranteed Buyer will then use to repay its payment arrears owed to renewable energy producers accumulated during 2020 and 2021.

The EBRD's participation in the transaction was conditional upon two key elements: (1) a clear commitment of the Government to ensure the proceeds are channelled in full towards the settlement of payment arrears owed to renewable energy producers; and (2) an obligation for the sector Regulator to set Ukrenergo's tariff at a cost recovery level, including full compensation to renewable energy producers going forward.

The transaction will contribute to restoring the credibility of the sector and the confidence of private investors and financiers, whose investments are critical to the green transition of the Ukrainian economy.

Transition Impact

ETI score: 66

The transition impact of the project will stem from the following two transition impact qualities:


Resilient: The Project will enhance the financial viability of Ukrenergo, as well as stabilise the financial performance of the renewable energy generation subsector of Ukraine;

Green: The SLB proceeds will be used to repay all outstanding receivables of the renewable energy producers and unlock further sustainable development of renewable generation in the country.

Client Information


Ukrenergo is a 100% state-owned company, a natural monopoly and the sole electricity transmission operator (TSO) of Ukraine.

EBRD Finance Summary

USD 75,000,000.00

Total Project Cost

USD 825,000,000.00


EBRD's participation in the SLB issuance provides comfort to other long-term institutional investors in the instrument and further widens market participation. In addition, EBRD's participation in the Project contributes to financial stabilization of the renewable energy generation sector and the Company.

Environmental and Social Summary

Categorised B (2019 ESP). The SLB issuance is associated with Ukrenergo's aim to support renewables energy sector in Ukraine through the clearance of outstanding payment arrears. It will also facilitate an overall increase in renewables energy generation, leading to a progressive growth of the share of renewable energy generation sector from 11.8% in 2020 (baseline) to 14.6% in 2022, and 18.7% in 2030, with an increase from 6.5 GW (baseline) in 2020 to 10.1 GW in 2030. The Project will exclude A category sub-projects and the use of proceeds is for covering payment arrears to renewables.

SLBs are a new and emerging financial product, with limited presence globally, and the first issuance of this type in Ukraine. This SLB is in line with the International Capital Market Association's ("ICMA") principles for SLBs and was reviewed by Sustainalytics the Second Party Opinion provider. Additionally, the current Environmental and Social Due Diligence ("ESDD") has reviewed the status of the implementation and compliance with Ukrenergo's existing Environmental and Social Action Plan ("ESAP") and the Company's approach to environmental and social governance.

The in-house ESDD confirmed that the existing ESAP is being implemented and the Company has the institutional capacity to implement the Bank's Performance Requirements ("PRs"). However, this needs to be continuously strengthened and technical support is needed in the future. An updated ESAP was agreed with the Company in order to further strengthen its corporate commitments. This includes a future environmental and social review of the Company's capacity to implement the Bank's PRs, compliance with ESAP as well as status of the existing retrenchment program, which had been developed jointly with EIB and KfW in 2020 as part of a previous engagement between Ukrenergo and the EBRD.

Additional information on the Company can be obtained from the Company's sustainability reports, which can be found here (

Overall, the ESDD has confirmed that the Project is structured to comply with the Bank's PRs. The strengthening of the ESAP will allow to meet goals of renewable energy generation increase and for stronger annual reporting on environmental, social and governance issues under this issuance and the ESAP. The Company will continue to publish sustainability reports and report on the Sustainability Performance Targets ("SPTs"), under the SLB on its website on an annual basis.

The Bank will monitor the implementation of the ESAP by the Company through monitoring visits and review of annual reports.

Technical Cooperation and Grant Financing


Company Contact Information

Nataliia Snezhko
+380 44 238 3070
Symona Petlyury St, 25, Kyiv, 01032

Implementation summary

PSD last updated

11 Nov 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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