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11.07.2023

OeEB is providing a long-term credit line of EUR 30 million to the Black Sea Trade and Development Bank (BSTDB). The credit line, which is earmarked for green finance projects and financing to support the private sector in Ukraine, is secured by a guarantee from the Austrian Federal Ministry of Finance (BMF). OeEB has been partners with the BSTDB, a regional multilateral development bank with 11 member countries, since 2012 and with this transaction supports a strategic partner in the Black Sea region, which is important for Austria's economic interests. EU countries and Russia are excluded from the allocation of funds.

In the Black Sea region, the expansion of renewable energy is particularly important for strengthening energy security. However, due to the Russian war of aggression and its geopolitical distortions in the region, private investors are increasingly withdrawing from these markets. 

"With our dedicated credit line of EUR 30 million, we are providing financing to the BSTDB with a term of up to seven years. In line with our strategy, we are thus contributing to the provision of clean energy and climate protection by reducing greenhouse gas emissions. BSTDB's project pipeline in the area of green finance includes wind farms and photovoltaic projects in target countries of Austrian development cooperation such as Georgia and Moldova. With our credit line, we can further expand our commitment to combating the climate crisis and at the same time also support the region in reducing its dependence on fossil fuels", explained OeEB Board Member Sabine Gaber at the signing of the contract in Thessaloniki.

Support for the private sector in Ukraine

Up to 50% of the credit line, which is secured by a guarantee from the Austrian Federal Ministry of Finance (BMF), is earmarked for financing private sector investments in Ukraine.

OeEB Board Member Michael Wancata: "The focus of the newly signed credit line is on bridging liquidity bottlenecks of private sector companies. As soon as conditions permit, OeEB funds will also be extended via the BSTDB for sustainable reconstruction projects that comply with international environmental and social standards. In addition, we signed a memorandum of understanding with the European Bank for Reconstruction and Development (EBRD) in June at the Ukraine Recovery Conference in London together with other development finance institutions."