EBRD Pumps €4 Billion into Its War Chest
The European Bank for Reconstruction & Development (EBRD) has just green‑lit a tidy €4 billion raise, bumping its paid‑in capital up to a shiny €34 billion.
Why the Money Matters
- Ukraine’s Front‑Line Financing: The new cash will keep the bank churning out sustainable investments into Ukraine’s real economy— both during wartime and the rebuild that follows.
- Across the Board Boost: It’s not a one‑country affair. The extra capital also backs the EBRD’s priorities wherever it operates.
- Track Record: Since Russia’s February 2022 invasion, the bank has already shipped out more than €3 billion to Ukraine.
Oleg and the Board’s Grand Plan
In November 2023, the EBRD’s Board of Directors laid out a recommendation to expand the authorised capital stock. Now the governors have approved the resolution, sealing the deal. The extra capital will officially kick in on 31 December 2024.
All In—No More Loose Edges
With this final push, the bank has streamlined its formal capital‑increase process. It means more stability for investors and, most importantly, a ready supply line for the funds that will rebuild war‑torn economies.
EBRD Takes a Big Step – Capital Boost for Ukraine & a Stronger Future
In a bold move that marks the third capital increase in its history (the first two came in 1996 and 2010), the European Bank for Reconstruction and Development (EBRD) is injecting fresh cash to keep its mission alive and kick‑off Ukraine’s recovery at full speed.
Why Now? Why This?
- In May 2023, the bank’s governors made it crystal‑clear: Ukraine is the top priority, now and forever.
- The extra funding keeps the EBRD on track with its global strategy – boosting competitiveness, governance, greening, inclusion, resilience, and integration across all the regions it serves.
Word from the Top
Odile Renaud‑Basso, President of the EBRD speaks with genuine excitement: “We’re at a historic moment, folks. Shareholders are backing us with confidence, and that’s the biggest endorsement we could ask for.” She adds, “This capital lift will make us not just bigger, but stronger—for Ukraine, for every economy we touch, and for our shareholders.”
What the Extra €6bn (or whatever) Will Do
- Maintain a steady €1.5 billion per year in Ukraine even while fighting war, all backed by the bank’s own balance sheet.
- Pave the way to ramp up to €3 billion a year once reconstruction kicks into gear.
- Keep the bank robust enough to fully support other economies tackling their own transition challenges.
How Shareholders Can Join the Party
Under Article 5.3 of the Agreement Establishing the EBRD, shareholders will get the chance to buy these additional shares. The first rounds of subscriptions are slated for early 2024, with payments kicking off in early 2025.
New Player Onboard
In November 2023, Iraq became an EBRD shareholder. That brings the total to 72 national shareholders, plus the European Union and the European Investment Bank.
Know‑What‑We’ve Done
The EBRD, founded in 1991, has already invested over €190 billion in more than 6,800 projects worldwide. Every investment is aimed at making the region’s economies:
- Competitive
- Well‑governed
- Green
- Inclusive
- Resilient
- Integrated
Got a second to breathe? That’s all you’ll need to understand why the bank’s next chapter is bustling with hope and action.
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