IFC invests $25 million in Rebuild Ukraine Fund to support Ukrainian businesses

The International Finance Corporation (IFC), part of the World Bank Group, has announced a $25 million investment in the Rebuild Ukraine Fund LP (REBUF). This private equity fund was established in 2024 by the Ukrainian investment group Dragon Capital and aims to raise up to $250 million.

This is reported by AgroReview

Investment Priorities of the Rebuild Ukraine Fund

The Rebuild Ukraine Fund will focus its efforts on supporting small and medium-sized enterprises operating in key sectors for Ukraine’s recovery: consumer goods and services, healthcare, pharmaceuticals, financial services, agribusiness, building materials, retail, and technology.

Financing Structure and IFC’s Role

IFC will act as an anchor investor with a partial first-loss guarantee of 50% of the invested amount. This guarantee will be provided by the government of France and other international guarantors. According to IFC representatives, this investment plays a crucial role in the fund’s first closing, as attracting private capital in a state of war remains a challenging task.

“Its investment is critical for the fund’s first closing, as attracting private capital during wartime remains difficult.”

Since the full-scale invasion of Russia into Ukraine, IFC has supported only one similar fund – the Horizon Capital Growth Fund IV, with a total volume of $350 million. It is anticipated that the Rebuild Ukraine Fund will also be primarily financed by development finance institutions (DFIs). Dragon Capital plans to invest its own $20 million in the fund, and the European Bank for Reconstruction and Development (EBRD) has already agreed to contribute an additional $25 million.