The Black Sea Trade and Development Bank (BSTDB) has secured a US$150mn loan agreement with Japan’s export credit agency to help support the rebuilding of Ukraine’s infrastructure.

The facility, provided by the Japan Bank for International Cooperation (JBIC) and signed on September 30, will fund emergency measures, enabling BSTDB to finance projects in Ukraine and neighbouring countries across various sectors, including agriculture, food, transport and logistics, digital infrastructure and medicine.

Up to US$75mn of the credit line may also be used for climate change mitigation projects across BSTDB member states, in line with JBIC’s Global Action for Reconciling Economic Growth and Environmental Preservation (Green) initiative. These include renewable energy and energy efficiency improvement projects.

The facility follows the signing of a memorandum of understanding between JBIC and BSTDB in February that aims to “foster business activities that contribute toward the reconstruction of Ukraine while promoting projects that address climate change mitigation”, according to JBIC.

“At this critical moment, we are proud to stand by Ukraine with strong financial backing from JBIC. This facility is a clear demonstration of our pledge to helping Ukraine and other affected countries in the region as they navigate these difficult times,” says Serhat Köksal, president of BSTDB.

“The US$150mn allocated for Ukraine will catalyse essential investments that are crucial for the country’s recovery and future growth. Both portions of the facility are interconnected, reflecting our shared commitment to addressing immediate and acute needs while fostering green investments that will benefit the region’s long-term sustainability.”

Ukraine’s total reconstruction bill was estimated at US$411bn in 2023, prompting a wave of loans and risk-sharing agreements from export credit agencies and development banks around the world.

Recently, British International Investment entered into a £30mn risk-sharing agreement with the European Bank for Reconstruction and Development to facilitate imports to the country. In August, the EU launched an export credit facility to boost SME exports to Ukraine with an €300mn initial pilot.