Dutch Good Growth Fund Becomes a Shareholder of Bank Lviv

The Dutch Good Growth Fund (DGGF) brought new capital to Ukraine’s Bank Lviv, investing almost €5 million in the institution after the fund’s investor applied to the central bank and received approval to purchase Bank Lviv shares, the bank’s press release said.

DGGF is managed by the consortium of Triple Jump and PwC, on behalf of the Netherlands Government. The decision to invest was previously announced at the Berlin Recovery Conference.

This was followed by a €1 million additional contribution by the bank’s biggest shareholder Swiss-based ResponsAbility Participations. The total capital increase of Bank Lviv amounted to €5.5 million, according to the press release. 

“After all, with this investment, financial capacities for the development of small and medium-sized businesses in the Western region of Ukraine are improving. We consistently adhere to the adopted strategy, focusing on stable financing of entrepreneurship,” the Chairperson of Bank Lviv’s Management Board, Ashot Abrahamyan, stated in the press release.

DGGF supports funds and financial institutions serving small and medium-sized businesses in emerging and fragile markets in over 70 countries. Bank Lviv can fill the role – the bank became a key player after businesses relocated to Lviv because of Russia’s full-scale invasion of Ukraine in February 2022.

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Bank Lviv already brokered the deals with the European Bank of Reconstruction and Development, KfW Development Bank, German Sparkasse, a bank loan guarantee agreement with the US federal government’s International Development Finance Corporation (DFC).

The bank also launched a grant program for small and medium business enterprises international humanitarian and development agency Oxfam, grant program from the German Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and another one from the EU as a part of EU4Business program.