Norfund is investing USD 15 million in the Rebuild Ukraine Fund (REBUF), managed by Dragon Capital, to help address the shortage of equity capital for Ukrainian businesses. 

The ongoing war has severely constrained investment activity, leaving small and medium-sized enterprises (SMEs) without the resources needed to grow, create jobs, and contribute to Ukraine’s economy. SMEs are employing over 60% of the workforce in Ukraine.

The Rebuild Ukraine Fund targets a total size of USD 250 million and will focus on majority investments in resilient businesses across sectors such as consumer goods, healthcare, manufacturing, and technology. 

“As in Norway, small and medium-sized enterprises form the foundation of Ukraine’s economy. This investment strengthens these businesses, enabling job creation, resilience, and reconstruction during wartime,”

Åsmund Aukrust

Minister of International Development

Norfund’s investment will be part of the fund’s first close, alongside commitments from other European development finance institutions including IFC and EBRD. Together, these contributions will help mobilize additional international capital and strengthen Ukraine’s private sector.

“By providing growth capital to these businesses, we are supporting job creation, innovation, and the rebuilding of critical supply chains. With a dedicated team on the ground and a strategy built for wartime conditions, REBUF will support companies with strong local roots and growth potential,”

Tellef Thorleifsson

CEO at Norfund

Dragon Capital’s track record and deep local presence make it a great choice for a trusted partner for Norfund in Ukraine.

“The reconstruction of Ukraine depends on companies that continue to operate and invest despite the war. Partnership with Norfund allows Dragon Capital to direct more capital to businesses that are developing new products, expanding capacity, and strengthening local industries. We appreciate the trust of international partners and remain focused on turning it into long-term, practical results for the Ukrainian economy”, says Tomáš Fiala, Founder of Dragon Capital.

This is the second investment made under Norfund’s Ukraine Investment Mandate, which aims to support high-risk, high-impact investments that contribute to the country’s resilience, reconstruction, and long-term integration with European markets.

“Norway’s support for Ukrainian businesses is also an investment in freedom, democracy and economic resilience. By helping sustain economic activity, we strengthen Ukraine’s ability to withstand the aggression and to shape its own future,” says Minister Aukrust. 

The Climate Investment Fund is committing 400 million kroner to Scatec’s Obelisk project in its first investment in Egypt. The hybrid plant, with 1.1 GW of solar power and 200 MWh of battery storage, will help avoid 1.5 million tons of CO₂ annually.

The project, located in Naga Hammadi in Upper Egypt, will deliver stable and cost-efficient renewable energy to a country with rapidly growing power needs. Obelisk is Scatec’s largest project to date.

The large-scale project will generate more than 3,000 GWh of electricity annually, avoiding 1.5 million tons of CO₂ emissions. That is roughly equivalent to Norway’s largest single point source, Mongstad, or about 3 percent of Norway’s annual emissions.

“This project is an example of what we need more of in development policy. By combining private and public capital, we help deliver high-tech solutions that create jobs and cut greenhouse gases in developing countries. In October, I learned about the important role Scatec plays in Egypt when I visited the country, and I look forward to following their work going forward,”

Åsmund Aukrust

Minister of International Development

Through the agreement, Norfund, via the Climate Investment Fund, will own 25 percent of the Obelisk holding company, while Scatec will own the remaining 75 percent. The French company EDF will own 20 percent of the operating company (SPV), giving Scatec and Norfund total ownership shares of 60 and 20 percent respectively.

“The Obelisk project is a good example of how the Climate Investment Fund can help accelerate the transition from fossil to renewable energy in emerging markets through profitable investments,”

Bjørnar Baugerud

Head of the Climate Investment Fund

The investment is the Climate Investment Fund’s first in North Africa and its first in Egypt. The country was added earlier this year as one of the fund’s 13 priority countries, and Norfund has worked with Scatec on this investment for an extended period.

“We are very pleased to continue our valuable collaboration with Norfund. Obelisk is the largest project Scatec has begun constructing to date, and the combination of solar and batteries will deliver stable and cost-efficient renewable energy to meet Egypt’s growing power needs and support its energy transition,” says Scatec CEO Terje Pilskog.

Since Norfund began managing the Climate Investment Fund in 2022, it has committed 5.6 billion kroner during its first three years. These investments support projects that, once completed, will avoid 17.6 million tons of CO₂ annually. That corresponds to 40 percent of Norway’s annual emissions. At the same time, the fund has delivered an average return of 14.4 percent in investment currency (19 percent in NOK).

Norfund is investing in the Programme Electricité Pour Tous (PEPT) second social bond issuance in Côte d’Ivoire to help finance up to 400,000 new grid connections for low-income households and small businesses, supporting Côte d’Ivoire’s ambition to achieve universal electricity access by 2030. 

The bond issuance (FCTC EPT 2025-2040), totalling XOF 60 billion (EUR 91 million), is structured in three tranches and issued by a securitization vehicle called “Fonds Commun de Titrisation de Créances Électricité Pour Tous” (FCTC EPT).  

Norfund will invest approximately EUR 11.5 million (XOF 7.5 billion) in Tranche B, alongside Société Ivoirienne de Banque (SIB), with the latter covered by a risk enhanced guarantee from the International Financial Corporation (IFC).  

The transaction builds on the success of the first PEPT bond issuance in 2023. It further deepens participation of local capital markets in the West African Economic and Monetary Union (WAEMU) for energy projects. 

“This investment reflects Norfund’s commitment to mobilizing long term local capital and accelerating access to affordable energy in Sub-Saharan Africa. We are delighted to support the PEPT fund as part of this Phase 2 electrification programme which is aligned with both Côte d’Ivoire’s National Development Plan, and Norfund’s objectives in accelerating energy access on the continent,” said Fabrice Mpollo, Senior Investment Manager at Norfund. 

PEPT enables low-income households to connect to the grid with a modest upfront payment, while the bulk of the infrastructure cost is paid down over time through the monthly electricity bills.  

Since its launch in 2014, the program has facilitated over 2 million connections, 63 percent of them in rural areas. The second bond issuance will finance an additional 400,000 connections, contributing to the World Bank and AfDB’s “Mission 300” initiative, aiming to connect 300 million Africans to electricity by 2030.  

Last week, IEA’s World Energy Outlook 2025, showed that around 730 million people still live without electricity, a decrease of 11 million since last year’s report. 

The investment is aligned with Norfund’s strategy to promote development impact through local currency financing and support for underserved populations, and Norfund’s goal to increase access to energy. Last year, 750,000 households gained access to electricity from Norfund’s investees. 

Norfund is part of an anchor investor group alongside the African Development Bank and The Emerging Africa & Asia Infrastructure Fund (EAAIF). The project also includes as a key stakeholder, CIE, the national electricity company and distributor in Cote d’Ivoire, which will be responsible for the implementation of the programme. 

“By joining this innovative transaction, we contribute to accelerating electricity access for underserved populations and to the sustainable development of their communities, while strengthening the alternative financing ecosystem in Côte d’Ivoire”, says Fabrice Mpollo. 

Norway is investing around NOK 100 million through its Ukraine Investment Fund to strengthen the flow of goods in and out of Ukraine. This marks the fund’s first investment in Ukraine.

The support will go toward increasing warehouse capacity in the M10 Industrial Park in Lviv, western Ukraine. 

Since the war began, much of Ukraine’s trade has shifted from east to west. At the same time, the country’s logistics capacity has been severely reduced – not least because ports on the Black Sea are under constant attack. The lack of storage and logistics facilities in western Ukraine is particularly hindering trade and economic growth. Expanding the M10 Industrial Park will make it possible to establish an important transit hub toward Europe for importing goods to the Ukrainian population and exporting goods that generate income for the country. 

“An important part of Ukraine’s resistance is keeping the economic wheels turning. The Ukraine Investment Fund’s first investment is a good example of how the fund will contribute to this by investing in sustainable businesses and infrastructure projects,”

Åsmund Aukrust

Minister of International Development

M10 Industrial Park is already operational. The first construction phase is fully leased, and the park enjoys strong international support. The Ukraine Investment Fund’s investment will help triple warehouse capacity. When fully developed, the park will offer up to 150,000 square meters of logistics space and serve as a central hub for goods entering and leaving Ukraine. The project is expected to support the creation of up to 3,000 jobs. 

Since the government decided last year that Norfund would manage the Ukraine Investment Fund, Norfund has established a dedicated Ukraine team that has worked to build an investment portfolio. The investment in the industrial park is the fund’s first investment and is being made together with a leading Ukrainian investment company, Dragon Capital. 

“By investing in the M10 Industrial Park, we help create several thousand jobs, in line with our mandate to promote sustainable business and job creation in Ukraine,” said Norfund CEO Tellef Thorleifsson.