State-owned Ukrgasbank has gained a reputation as a top green financing ambassador in Ukraine. In 2016 the bank fundamentally changed its vector of development in favor of sustainability. Today, it represents a successful combination of a classic financial institution and a leading green bank.
Engineers among bankers
As a green bank, Ukrgasbank is active in showcasing how energy efficiency can lower expenses, reduce the cost of goods and, accordingly, improve a company’s competitiveness. To raise awareness among clients, the bank’s team set up a dedicated (and unique in the banking sector) department of engineers able to provide full-cycle green finance expertise.
Professional environmental scientists and technical experts at the department can help clients with not just a financial, but also a technical solution. They visit a client, study their production processes and provide recommendations regarding what could be improved. This way, the bank can do more than just provide some explanations, but also provide a detailed analysis – how much the company will be able to save in the future, or, possibly, even earn.
Ukrgasbank introduced Ukraine’s first turnkey solar power plant installation financing program. The clients immediately responded to this green initiative. The motivation to transition to green energy is no longer just about Ukrainians’ desire to become independent. Rather it is about a conscious contribution to healthy future of the country.
Energy efficiency for business
Ukrgasbank also offers a program for Ukrainian businesses’ own energy consumption. It provides financing for industrial solar parks with loans that can be received under the Affordable Loans 5-7-9% Program.
There are no issues with the green tariff, a minimal number of documents and time to commission the solar park is needed – in return up to UAH 3 million for a term of 5 years with a down payment of at least 20%. Clients will also receive support from energy professionals from the technical office and a wide choice of reliable contractors (EPC).
Most importantly, building an own solar park, for example, with a capacity of 100 KW implies 110,000 KW*h generated each year. This can mean an annual profit through replacement of UAH 300,000 and simple return rate of 5 years. It also helps transition the business to fully sustainable energy that is entirely safe for our environment.
Capital truly at work
A deposit at a state-owned bank is not just a reliable place to keep money, but also a possibility to earn additional income from interest rates (these can be both monthly and “end-of-term”). At Ukrgasbank, you can set up your savings to ‘work’ on improving the Ukraine’s natural environment.
Our unique ECOdeposit, which was launched at the end of last year but fast gained great popularity, directs funds exclusively at financing projects for the protection of the environment. As of today, over UAH 6 billion have been placed in this product.
This way every depositor can make a real contribution to the eco-modernization of the country. The deposits currently finance nearly 146 energy-efficient projects. This accounts for a reduction of CO2 emissions by 173,200 t, a generation of 245.3 million KW*h of green energy (for over 98,000 Ukrainian households), and the use of fossil fuels of 198,400 Gcal to heat over 57,500 apartments.
Helping business
The bank works with small and medium enterprises through beneficial programs. For example, this winter, Ukrgasbank joined the presidential program Affordable Loans 5-7-9%. As of now, the bank has become the leader among all banks in the country, having issued 206 loans for a total UAH 136 million. A total of 554 loans totalling UAH 348.4 million have been issued as part of the program – this means every third such loan was issued by Ukrgasbank.
The first loan for a startup in Ukraine was also issued by Ukrgasbank (it also turned out to be an green loan). The bank allocated UAH 1.3 million to help a young entrepreneur from Khmelnytskiy region launch their business of producing a fire starter from wood fiber.
Benefit from thermal modernization
If you lead, you must lead in everything. For the past several years, Ukrgasbank has been the record-setter in financing energy-efficient projects for homeowner associations (HOA) and building co-operatives. Thanks to real actions, the Ukrainians experienced the benefits of modern, sustainable and energy-saving technologies. Therefore, during the quarantine, when the issue of saving energy resources became very relevant both at a state and household level, the bank continued to implement its green-banking strategy by launching another stage of its Warm Loans program, which envisages financing thermal modernization in private and multistory buildings.
Under the program borrowers who introduce energy-efficient measures within the aforementioned program, can receive state reimbursements for up to 70% of the received “warm loan”. This represents a possibility to install energy efficient glass units in public places, thermal insulation of outer walls of apartment buildings, purchasing thermal energy and water devices, modernize lighting systems of buildings, etc.
To earn and save
Ukrgasbank offers a number of beneficial programs. However, it is often difficult for a client to decide which one they need, as they are not aware of all the possibilities.
A unique ECO-BOOM (Business of the Ukrainian Future) program helps businessmen find the best solution. This is a beneficial initiative from Ukrgasbank for those SME representatives, who aspire not only to earn money, but also substantially save funds. The bankers help understand the needs of the business and develop an individual plan of development, while the clients receive easy access to modern bank products and services for the businessmen as well as unique programs and financial solutions that can take their business to an entirely new level.
Even quarantine does not stand in the way of supporting SME clients thanks to remote service ECOBOOM 24/7. It is a new high-tech system for business clients and, primarily, for representatives of SME, that allows the businessmen to manage their finances online without any restrictions.
An affordable mortgage
Another innovation from the bank – a mortgage offering that will not overwhelm a majority of Ukrainians, but instead provides a first truly affordable mortgage program with 8.8% interest rate in hryvnia. This is clearly more beneficial than renting a home. These conditions are available for Ukrgasbank clients across Ukraine.
As a state-owned bank, Ukrgasbank’s mission is to support Ukrainians – it fully shares the government’s desire to provide a home for every Ukrainian family, especially when incomes of most Ukrainians do not allow them to buy a home right away (and while young families need decent living conditions).
You can learn about the amount of mortgage you are eligible for without visiting a bank, by filling out a questionnaire on the website and receiving your mortgage certificate. Also on the bank’s website, you can use the loan calculator, which will help you calculate your monthly payments on the loan.
