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Proparco, representing France, intends to commit EUR 15 million in the European Flagship Fund for the Reconstruction of Ukraine

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• At the Ukraine Recovery Conference in Gdańsk, Poland (25–26 June), Proparco, France’s development finance institution and the private-sector arm of AFD Group, announces its intention to invest EUR 15 million in the European Flagship Fund for the Reconstruction of Ukraine (the “Flagship Fund”).
• Backed by the European Union, France, Germany, Italy and Poland, the Flagship Fund is an unprecedented initiative designed to attract private capital towards financing Ukraine's economic recovery and reconstruction.
• Through this planned investment, Proparco, representing France, will join its fellow DFIs EIB, KfW, CDP and BGK as an anchor investor in the EUR 220M first-loss tranche of a EUR 500M targeted fund size.

According to current estimates, Ukraine’s reconstruction and modernization needs amount to at least EUR 498 billion (USD 588 billion), highlighting the urgent need to mobilize both public and private investment at scale.

At the Ukraine Recovery Conference in Rome last year, European Commission President Ursula von der Leyen highlighted the critical role of private-sector participation in Ukraine’s reconstruction and announced the launch of the Flagship Fund initiative. Led by the European Commission, France, Germany, Italy and Poland through their respective development finance institutions (DFIs), and supported by the Government of Ukraine, the Fund seeks to accelerate the country’s recovery by attracting long-term private investment. The Fund will focus on (re)building critical infrastructures in the energy, transport, logistics and digital spaces, as well as backing SMEs in productive sectors such as consumer goods, agriculture, health and financial services.

Today, Proparco announces its intention to invest EUR 15 million in the Fund as an anchor investor, alongside fellow European development finance institutions EIB (European Union), KfW (Germany), CDP (Italy) and BGK (Poland).

The Flagship Fund aims to support Ukraine’s reconstruction and long-term resilience by investing in strategic sectors that drive economic recovery, strengthen energy security and foster sustainable and inclusive growth.

  • Building resilient infrastructure that supports Ukraine’s recovery, strengthens its sovereignty, and facilitates access to the EU market (SDG 9).
  • Modernizing productive assets aligned with EU and DFI standards to strengthen resilience and avoid greenhouse gas emissions (SDG 13).
  • Expanding renewable energy capacity to strengthen access to clean energy, enhance energy security and diversify energy supplies (SDG 7).
  • Creating quality jobs and supporting access to essential goods and services to the Ukrainian population (SDG 8).

“Proparco, representing France, is proud to support the European Flagship Fund initiative, backed by the European Commission, through a planned investment of EUR 15 million, with the ambition of joining EIB, Germany (via KfW), Italy (via CDP) and Poland (via BGK) as an anchor investor in the Fund’s EUR 220 million first loss tranche. In doing so, France will play a key role as anchor investor in the Fund, fully aligned with the objectives of the EU’s Ukraine Investment Framework and its own mandate. The fund represents an important milestone in supporting Ukraine’s reconstruction while catalyzing much-needed private capital. Investing in core infrastructure and supporting businesses is essential to the country’s long-term recovery and resilience. Finally, we are very proud to support this European landmark initiative and to stand with Ukraine.” said Claudia Martinez Ochoa, Head of Private Equity for Asia, Latin America and Eastern Europe.