Press release -
Swedfund invests in private sector recovery and resilience in Ukraine
Swedfund invests USD 15 million in the Rebuild Ukraine Fund (REBUF) to support Ukraine’s economic recovery. The investment will provide long term capital to small and medium sized enterprises, helping sustain jobs and access to essential goods and services in a country affected by war.
Small and medium sized enterprises are a core part of Ukraine’s economy, yet access to long term risk capital has declined sharply since the full-scale invasion. Swedfund’s investment addresses this gap by providing patient capital to companies that continue to operate and deliver economic activity and essential services.
The investment will support companies in sectors including healthcare, financial services, agri related industries, retail and technology, with a focus on corporate governance, productivity and sustainable business practices.
“Maintaining a functioning private sector is essential for Ukraine’s recovery. Through this investment, Swedfund provides long-term capital to companies that are important for employment, essential services, and economic activity. This is where our capital can be most additional and catalytic,” says Sofia Gedeon, Investment Director Sustainable Enterprises at Swedfund.
In addition to capital, Swedfund will actively engage on environmental, social and business integrity standards, supporting the fund manager in strengthening governance, sustainability practices and impact management in line with international requirements.
The investment contributes to SDG 10 Reduced Inequalities, by safeguarding jobs, supporting economic activity, and strengthening resilience in a war-affected country.
Swedfund’s investment is made alongside development finance institutions IFC, EBRD and Norfund.
About Rebuild Ukraine Fund
Rebuild Ukraine Fund is a private equity fund investing in small and medium sized enterprises operating in Ukraine. The fund is managed by Dragon Capital, a well-established Ukrainian investment and financial services firm founded in 2000, and has a mandate to provide long-term risk capital to companies in sectors relevant to economic activity and essential services.
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About Swedfund
Swedfund is Sweden’s development finance institution with the mission to reduce poverty through sustainable investments in developing countries. Swedfund plays an important role in the implementation of the 2030 Agenda and the Paris Agreement on climate. Swedfund shares the same goal as development cooperation in general, but the tools Swedfund uses are different. Swedfund has two instruments to fulfil its mission: sustainable investments in the private sector and technical feasibility studies through the Project Accelerator targeting the public sector.
Swedfund's investments contribute to the creation of decent jobs and increased access to essential products and services such as electricity and food. Swedfund is a long-term investor and is additional and catalytic through its investments and by mobilising private capital. Swedfund's feasibility studies support sustainable public infrastructure development, trade, and export opportunities for Swedish solutions.
We are part of Swedish development cooperation, and we measure and report all our results. As a state-owned company, Swedfund is managed by the Ministry of Finance and financed through portfolio reflows and annual capital injections for which the Swedish Ministry for Foreign Affairs is responsible.
For more information: please visit www.swedfund.se/en
