The European Bank for Reconstruction and Development (EBRD) plans to provide Kormotech LLC (Lviv region), a large Ukrainian producer of pet food, with a loan in the amount of EUR 10 million.
According to the EBRD, the loan could be issued to Kormotech for the construction of a pet food plant in Lithuania and the expansion of feed production facilities in Ukraine.
The bank said it would support the first cross-border investment of the Ukrainian company, consisting of the construction of a new production facility in Lithuania.
According to the EBRD, Kormotech is one of the three largest producers of pet food in Ukraine.
The EBRD could approve the decision on the loan on December 11, 2019.
As reported, Kormotech launched the construction of a feed plant in Lithuania in 2018 and plans to launch it in 2019. The planned capacity is 5,000 tonnes of wet feed per year.
Kormotech exports products to over 20 countries, including France, Estonia, the Netherlands, Slovenia, and Poland. The company’s facilities include two plants for the production of dry and wet feed in Lviv region. The company produces goods for cats and dogs under its own brands Optimeal, Club 4 Paws.
The ultimate beneficiaries of Kormotech are Olena and Rostyslav Vovk.
The Board of Directors of the European Bank for Reconstruction and Development (EBRD) has approved the provision of additional financing in the amount of EUR 200 million for the development of renewable energy sources in Ukraine. The EBRD said it intends to issue new funds to finance private renewable energy projects under the current system of stimulating “green” tariffs. The planned replenishment will allow the bank to build on the success of USELF-III and maintain momentum in the transition from the existing mechanism of preferential tariffs to a support system based on competitive auctions.
The bank noted that the third program of financing renewable energy development approved in July 2018 in the amount of EUR 250 million (Ukraine Sustainable Energy Lending Facility, USELF-III) will be fully implemented by the end of 2019.
As reported, the EBRD under the USELF program has been supporting the development of renewable energy in Ukraine since 2009. The program is aimed at assisting the state in achieving by 2020 the share of “green” generation in the country’s total energy consumption at 11% (including a 6% share of large hydropower plants).
The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) are ready to provide a targeted loan in the amount of EUR 900 million to Ukraine to develop the road sector, acting Head of the State Automobile Roads Agency of Ukraine (Ukravtodor) Slawomir Nowak has said. “I have already held negotiations with the EBRD and the EIB. A new credit line will be opened for Ukraine in the amount of EUR 900 million,” he said.
According to Nowak, the negotiations were very difficult, but trust in the state and its managers ultimately allowed for a positive solution.
“Within the framework of this new credit line, we will also offer to finance the Weight-in-Motion system at the next stage,” the acting chief of Ukravtodor said.
Nowak also said that he recommended that Minister of Infrastructure Vladyslav Krykliy eararks funds from the Road Fund allocated for road safety to the installation of the Weight-in-Motion (WiM) system.
As reported, Ukravtodor launched in test mode the first two WiM points on the Kyiv-Chop highway.
On September 11, the Rada adopted at second reading a bill allowing automatic recording of violations during weight monitoring on roads.
Weight-in-Motion (WiM) systems will fulfill a function of pre-selection for inspectors of the State Service of Ukraine for Transport Safety until a law allowing automatic weight and weight control on roads is passed.
Ukravtodor previously planned in October to launch the first six WiM points at the entrances to Kyiv. In general, it is planned to install up to 100 WiM points.
The European Bank for Reconstruction and Development (EBRD) will finance the modernization of infrastructure of JSC Ukrzaliznytsia via the purchase of eurobonds worth almost $100 million, Ukrzaliznytsia Board Chairman Yevhen Kravtsov wrote on his Facebook page. “Today we signed the framework agreement: the EBRD finances the Ukrzaliznytsia infrastructure project via an additional issue of eurobonds. We received up to $100 million exclusively for infrastructure modernization. Against the background of permanent headline-grabbing tenders for the purchase of anchoring beams, switches this is a signal to the market: tenders will be held in accordance with EBRD rules,” Kravtsov wrote.
He said that the funds raised will go exclusively for the purchase of materials. Ukrzaliznytsia will carry out the work on its own.
The head of Ukrzaliznytsia recalled that over the past two years, the company’s attention has been focused on updating the rolling stock and locomotive fleet.
“Now it is the turn of the railroad track. Firstly, it is safety, secondly, we will increase the throughput, and thirdly, it is a possibility of increasing speed in some sections for both freight and passenger trains, thereby reducing energy-consuming stops,” Kravtsov said.
He also thanked the EBRD and the new Cabinet of Ministers team for helping to implement this agreement.
The board of directors of the European Bank for Reconstruction and Development (EBRD) has approved the issuance of up to $120 million to one of the largest Ukrainian agricultural groups, Kernel, on two projects within a syndicated loan to finance working capital.
According to information on the EBRD’s website, the decision was made on September 4.
Within the framework of one project, in particular, Kernel may receive up to $80 million to finance working capital, which is associated with the procurement, storage, transportation and sale of grains for export.
The total project cost is $300 million.
In addition, under another project, the EBRD intends to issue up to $40 million in the form of participation in a syndicated loan to finance Kernel’s working capital, which is related to the purchase, storage, processing, transportation of oilseeds and vegetable oil, as well as sale for export.
The cost of the entire project is estimated at $390 million.
Kernel is the world’s largest producer and exporter of sunflower oil, the leading producer and supplier of agricultural goods from the Black Sea region to the world markets.
The European Bank for Reconstruction and Development (EBRD) has acquired one-fifth (for EUR 120 million) of five-year eurobonds issued by Naftogaz in the amount of EUR 600 million, the bank has said.
“The eurobond proceeds are issued for general corporate purposes including the financing of gas purchases. The bank’s financing will be used exclusively for gas purchases. The transaction will contribute to Ukraine’s energy security, ensuring procurement of natural gas for the upcoming 2019/2020 winter heating season in the country,” the bank said on its website.
As reported, on July 12 Naftogaz Ukrainy placed two tranches of eurobonds denominated in euros and U.S. dollars: EUR 600 million for five years at 7.125% and $335 million at 7.375% per annum for three years. The anchor investors of the issue were the EBRD and a number of U.S. investors. The initial benchmark yield of dollar eurobonds was about 7.75%, eurobonds in euros about 7.5%.
Earlier, Naftogaz announced the need to urgently raise funds for the accumulation of increased volume of gas in storage facilities for winter – 20 billion cubic meters to be ready for a possible termination of transit by Gazprom from January 1, 2020 and strengthen its position in negotiations with the Russian gas monopoly.