EIB invests €50 million in Amber Dragon, the first-ever infrastructure equity fund for Ukraine’s recovery

This article is published in association with European Investment Bank.

• EIB joins EBRD, IFC and other development finance institutions as an investor in the Amber Dragon Ukraine Infrastructure Fund I
• Combined commitments at first close of around €200 million enable the fund to invest in projects that support Ukraine’s recovery
• The fund will support infrastructure projects and companies in Ukraine’s energy, transport and digital sectors
• The EIB contribution is financed through the EU4U Fund, the Bank’s dedicated instrument to support Ukraine’s recovery, backed by 16 EU Member States.

On the margins of the World Economic Forum in Davos, the European Investment Bank (EIB) has signed a €50 million commitment to Amber Dragon Ukraine Infrastructure Fund I (ADUIF), the first-ever specialised infrastructure equity fund investing in Ukraine. The fund is designed to help mobilise private capital in support of Ukraine’s recovery and long-term reconstruction.

Alongside the EIB’s €50 million commitment, the fund is expected to receive commitments from the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), Swedfund and Impact Fund Denmark. Together, these commitments are expected to reach around €200 million at first close, representing more than half of ADUIF’s €350 million target size and enabling the fund to begin investing.

The fund will invest in renewable energy, transport, and digital infrastructure, supporting essential services, economic activity and Ukraine’s long-term resilience. It is managed by a joint venture between Amber Infrastructure, a European infrastructure investor, and Dragon Capital, a leading Ukrainian investment manager, combining international investment expertise with strong local market knowledge.

“This is strong partnership at its best, when the world needs it most. Today the EIB Group joins our partners to demonstrate Europe’s unwavering support for Ukraine. We are proud to invest in the first-ever infrastructure equity fund for Ukraine’s recovery to provide emergency energy, reliable transport and basic services to the Ukrainian people,” said EIB Group President Nadia Calviño.

“Since the start of the war, the EIB Group has provided over €4 billion in financing, using a range of instruments to respond to different needs. Equity investment is one of those tools, helping to mobilise private capital where it is most difficult to reach. This is our third investment in an equity fund since the start of the war, and it reflects our confidence in Ukraine’s recovery and in partnerships that can deliver impact at scale,” added EIB Global Director-General Andrew McDowell.

Background information

The European Investment Bank (EIB), the bank of the European Union, has been active in Ukraine since 2007. Following Russia’s full-scale invasion in 2022, the Bank significantly stepped up its support to strengthen the country’s resilience and help rebuild critical infrastructure. Since then, the EIB has provided more than €4 billion in financing to Ukraine. Through the EU for Ukraine Fund (EU4U), the broader EU4U Initiative, and as a key partner in the European Union’s €50 billion Ukraine Facility, the EIB remains committed to scaling up its support, working closely with the European Commission, the European Parliament, EU Member States and international partners.

The EU for Ukraine Fund (EU4U) was established by the EIB in 2023 as a dedicated instrument to support Ukraine’s recovery and reconstruction. The fund is backed by contributions from 16 EU Member States: Belgium, Croatia, Cyprus, Denmark, Estonia, Finland, France, Italy, Ireland, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, Slovakia and Spain. The support provided under the fund enables the EIB to finance critical reconstruction projects in Ukraine that might not otherwise secure funding in the current challenging environment. The fund also helps project promoters by lowering borrowing costs, making vital recovery projects more affordable. EU4U has already supported a wide range of projects across Ukraine, including financing for small businesses to sustain jobs and economic activity, strengthening emergency response services, and supporting the modernisation of urban transport, thus helping maintain essential services and improve resilience.

About Amber Infrastructure

Amber is part of Boyd Watterson Global Asset Management Group LLC (‘Boyd’), a global diversified infrastructure, real estate and fixed income business with over $36 billion in assets under management and over 300 employees, with offices in eight US cities and 12 countries. Amber itself is a specialist international investment manager focused on investment, asset management and fund management. Amber’s core business focuses on managing infrastructure assets across the public, transport, energy, digital and demographic infrastructure sectors internationally. Amber is headquartered in London with offices in Europe, North America, Australia and New Zealand.

About Dragon Capital

Dragon Capital is one of the most active independent private investment management and investment banking firms operating in Ukraine. Founded in 2000, Dragon Capital has close to 30 years’ experience in managing funds and investing in Ukraine’s leading manufacturers of goods and service providers, as well as in landmark residential and commercial real estate projects.