Norfund is investing USD 15 million in Dragon Capital’s Rebuild Ukraine Fund to support equity capital for Ukrainian SMEs amid ongoing conflict.

Information on the Target

The Rebuild Ukraine Fund (REBUF), managed by Dragon Capital, is an investment vehicle aimed at bridging the equity capital gap faced by small and medium-sized enterprises (SMEs) in Ukraine, particularly in light of the ongoing conflict in the region. The war has significantly hindered investment activities, leaving many SMEs without the necessary capital to expand their operations, create jobs, and contribute to the overall Ukrainian economy. With SMEs employing over 60% of the workforce, their stability and growth are crucial for national recovery.

REBUF has a target size of USD 250 million and plans to make majority investments in resilient businesses across various sectors, including consumer goods, healthcare, manufacturing, and technology. This fund is designed to enhance job creation and promote economic reconstruction amidst the challenges posed by the war, ensuring that businesses can continue to operate and grow despite the adverse conditions.

Industry Overview in Ukraine

The Ukrainian economy has faced immense challenges due to the ongoing conflict, which has significantly impacted investment levels and operational capabilities of businesses. Before the war, Ukraine was on a steady path of