Market situation: high demand, deficit of financing


Demand

✔ "National projects" (LNG-terminal, industrial parks, etc.).
✔ Large scale projects with Chinese partners (Power plants, agricultural industrial integration project, "Air Express").
✔ Worn out transportation infrastructure: roads, railways, bridges, airports, gas and oil pipelines.
✔ Outdated traditional energy sector, alternative energy sector.
✔ Modernization of the old and construction of the new industrial enterprises.
✔ Natural resources (gas, oil, iron ore, coal, base minerals, gold).
✔ Aerospace industry.
✔ Shipbuilding.
✔ Telecommunications.
✔ Exports of raw materials and agricultural products.

Supply

✔ Enhanced requirements to risk assessment and size of equity reserves of global banks caused deficit of financing for risky assets.
✔ Almost all global banks suspended active operations in Ukraine due to war with Russia.
✔ Remaining banks subsidiaries in Ukraine do not have professional teams in structured and project finance.
✔ Ukrainian large private banks are engaged mostly in loan restructuring. They also do not have professional teams in structured and project finance.
✔ Ukrainian small private banks are mainly involved in servicing their shareholders.
✔ Both, large and small local banks do not refinancing of sufficient volume and duration.
✔ Ukrainian state banks could strengthen their presence in this segment, but slow and bureaucratic.
✔ EBRD and IFC are active in the market but they can do limited number of transactions which by far can not satisfy demand.