Amber Infrastructure and Dragon Capital to Manage the European Fund for the Reconstruction of Ukraine with €1 Billion
The British company Amber Infrastructure, together with the Ukrainian investment group Dragon Capital, has won the European market selection to implement the investment concept for the establishment of the European Fund for the Reconstruction of Ukraine. This initiative is being implemented in collaboration with the governments of Germany, Italy, Poland, and France, as well as with the participation of their development banks, the European Commission, and the European Investment Bank.
This is reported by AgroReview
Fund Objectives and Investment Directions
The European Fund for the Reconstruction of Ukraine aims to attract over €1 billion from both state development banks and private investors. The funds raised will be directed towards direct investments in private projects in key sectors of the Ukrainian economy. In particular, priority areas include the restoration of energy infrastructure, the development of wind and solar energy, the modernization of the industrial sector, as well as the development of digital infrastructure, including the establishment of data centers.
To minimize investment risks, the fund plans to create a separate tranche for first losses, which will be capitalized by KfW and other state investors. This protective buffer will amount to up to €220 million, allowing for the attraction of additional private capital.
Fund Launch Plans and Expected Impact
It is planned that by 2026, the targeted amount of raised funds will reach €800 million, and if the security situation in the country improves, the fund could grow to over €1 billion in 2027-2028. With such an investment volume, the multiplicative investment effect could reach €6-7 billion.
“The fund is designed to attract over €1 billion from state development banks and private investors and to directly invest in private projects in strategic sectors of the Ukrainian economy. This includes, in particular, the restoration of energy infrastructure, the development of wind and solar energy, the modernization of industrial production, as well as the development of digital infrastructure, including data centers.”
The launch of the European Fund for the Reconstruction of Ukraine is scheduled for the summer Conference on the Reconstruction of Ukraine, which will take place in Poland. After the official start, the fund will immediately begin its investment activities.