Strengthening energy security in Ukraine and Moldova

In Ukraine and Moldova, energy security is an essential component of a stable and successful future. But this can only be achieved by accelerating the green transition and enhancing energy resilience.

We are supporting this effort by providing long-term, local currency financing to two financial institutions. Leveraging our blended finance structure, we offer more attractive financing options – encouraging capital expenditure in energy security at a time of uncertainty.

We provided EUR 20.1 million in financing to Bank Lviv. This capital will support Ukraine’s economic resilience as the war continues into its third year. The bank’s end-investees were agriculture and manufacturing SMEs undertaking energy efficiency and renewable energy projects.

We strengthened Victoriabank’s capital base with a EUR 10 million subordinated loan. This allows the bank to expand access to green finance across Moldova. Symbolically, the Fund crossed the EUR 1 billion threshold with this investment.

Use of proceeds

Bank Lviv is using our financing to support its business clients and contribute to Ukraine’s green recovery. Investments are focused on energy-efficient agricultural equipment, small-scale solar photovoltaic (PV) for self-consumption, and energy efficient machinery and process improvements. Financing also drives residential upgrades such as modern boilers, new windows and doors, efficient lighting, and better heating systems.

Victoriabank is using our loan to support energy-efficient machinery for SMEs, residential energy upgrades and retrofits, and small-scale solar PV for self-consumption.

Impact of the partnerships

The partnership with Bank Lviv is set to deliver 18,060 MWh/year in primary energy savings and 4,710 t/year in CO₂ reductions . The Victoriabank partnership will provide 2,310 MWh/year in primary energy savings and 10,910 t/year in CO₂ reductions.

Support beyond the investment

In Ukraine, we have supported Bank Lviv through several advisory and capacity building projects, including an immediate crisis response following the outbreak of the war. We helped the bank set up a data recovery centre, implement IT back-up servers and relocate staff to Lviv. These actions ensured operational continuity in the first months of the war.

In Moldova, the investment in Victoriabank is accompanied by a Deep Greening advisory and capacity building program. This flagship initiative will allow the bank to develop dedicated green-lending expertise and products.

“This financing agreement with the Green for Growth Fund is a significant milestone in our sustainability strategy at Victoriabank. The EUR 10 million will enable us to empower local entrepreneurs to invest in impactful green projects, promoting both economic growth and environmental responsibility in Moldova. We truly value our partnership with GGF, which helps us in our mission to foster a more sustainable future for the country.”

Levon Khanikyan, CEO, Victoriabank

About the companies

Bank Lviv, headquartered in Lviv and internationally owned, has served businesses and individuals in Western Ukraine since 1990. It is one of the country’s fastest-growing banks, known for its transparent banking approach and long-standing commitment to green lending. With a strong green lending track record, and a goal of reaching a 15% green asset share by 2028, the bank is well-positioned to scale green lending.

Victoriabank is Moldova’s third largest bank and part of Banca Transilvania Group. With 35 years of experience, it plays a leading role in SME financing and is now advancing energy-efficient and climate-resilient lending across the country.