How securitization can help attract investment to Ukraine: NSSMC and IFC held an expert webinar

The NSSMC and the International Finance Corporation (IFC), a member of the World Bank Group, with the support of the Swiss State Secretariat for Economic Affairs (SECO), have begun practical work under the signed Cooperation Agreement. The sides have identified the development of securitization and the introduction of new financial instruments in Ukraine as one of the areas of cooperation.

The first practical step was an IFC expert webinar for NSSMC representatives, focusing on international experience with securitization and the potential for using this instrument to attract private capital to the Ukrainian economy.

In his opening remarks at the event, Oleksii Semeniuk, NSSMC Chairman, emphasized that following the adoption of the new securitization legislation, it is important to move on to the next stage — creating conditions for the practical application of this mechanism.

“Significant investment is needed to rebuild Ukraine, and it is important to create new opportunities to attract private capital. Securitization could be one such tool — helping banks free up resources for new lending and channel funding into the economy,” said Oleksii Semeniuk.

Maksym Libanov, NSSMC Commissioner, emphasized that the adoption of this legislation is an important step toward European integration and the development of Ukraine’s financial market. The next step will be to develop the necessary regulations and implement new instruments.

From the law to a practical mechanism

IFC experts presented an economic analysis of securitization and discussed how this instrument can be used to attract private capital.

The participants discussed various types of securitization, covered bonds, and the possibilities for their application in Ukraine following the adoption of the Law “On Securitization and Covered Bonds.” In particular, they discussed the mechanisms through which banks can raise funds using loan portfolios and other financial assets.

For the Commission, this work has practical significance: once the legislative framework is in place, regulations must be developed that will allow these new instruments to actually function in the Ukrainian market.

International experience and opportunities for Ukraine

During the webinar, special attention was given to transactions involving future cash inflows, known as DPR. IFC experts explained the mechanics of such transactions, investor requirements, and how Ukrainian companies can utilize them.

The participants also reviewed international experience with securitization and the conditions necessary for the development of this instrument in Ukraine: clear regulations, transparency in transactions, and adequate investor protection.

The expert webinar was part of the practical cooperation between the NSSMC and the IFC under the signed agreement. The next focus of their joint efforts is the transition from the legislative framework to the development of regulations and practical mechanisms necessary to launch securitization in Ukraine.