The Norwegian Investment Fund for Ukraine, managed by Norfund, is investing $15 million in the Rebuild Ukraine Fund (REBUF), which is managed by Dragon Capital and planned at $250 million, according to a press release.
The release notes that Norfund’s investment will be part of the fund’s first closing, alongside commitments from other European development financial institutions, including the International Finance Corporation (IFC) of the World Bank Group and the European Bank for Reconstruction and Development (EBRD).
Earlier, IFC and EBRD announced they would each invest $25 million in the REBUF fund.
“As in Norway, small and medium-sized enterprises are the backbone of Ukraine’s economy. This investment will strengthen such companies, help create jobs, and support reconstruction even during wartime,” said Norway’s Minister of International Development, Åsmund Aukrust, in the press release.
The REBUF fund is expected to provide long-term injections of equity and quasi-equity capital to Ukrainian small and medium-sized enterprises (SMEs) and mid-cap companies in sectors such as retail and services, healthcare, financial services, construction materials, and agriculture-related industries.
“The fund will provide businesses with the capital needed for growth, innovation, and the restoration of critical supply chains. With a local team and a strategy adapted to wartime conditions, REBUF will support companies with strong Ukrainian roots and growth potential,” said Norfund CEO Tellef Thorleifsson.
According to Dragon Capital founder Tomas Fiala, the partnership with Norfund allows Dragon Capital to direct more capital into businesses that create new products, expand production, and strengthen Ukrainian industries.
This is Norfund’s second investment under its Ukraine support mandate: in November, it announced an investment of about 100 million Norwegian kroner (€8.5 million) to expand the M10 industrial park in Lviv, developed by Dragon Capital in partnership with EBRD.
The Investment Fund for Ukraine was established in December 2024 and is managed by the Norwegian investment fund Norfund. Its aim is to support sustainable businesses and job creation in Ukraine. The fund invests in high-risk projects that might otherwise not be realized and attracts private capital by encouraging co-investment.
