The European Bank for Reconstruction and Development (EBRD) organizes a syndicated loan of EUR116 million for the manufacturer of sheet materials based on wood Kronospan UA (Novovolynsk, Volyn region), which is part of Kronospan Group, for the construction of a new plant, according to a bank press release.
“The EBRD will be the lender of the record for the amount of EUR116 million, while EUR50 million out of the total will be syndicated to commercial banks Raiffeisen Bank International AG and Raiffeisenlandesbank Oberösterreich under an A/B loan structure,” the report says.
“The funds will finance investments in new production facilities in compliance with relevant EU standards and regulations. The company plans to expand its production in Ukraine with the construction of a new facility in Novovolynsk, western Ukraine,” it reads.
“Specialized energy efficient equipment, including a 45 MW biomass boiler energy plant, a new transformer unit and a new precipitator filter will provide an alternative power supply solution, cut energy losses and help reduce dust emissions. High value-added products manufactured at these facilities are expected to lead to oriented strand board (OSB) imports substitution and more exports from Ukraine to the EU single market and other countries,” according to the document.
Kronospan was created in Austria in 1897. Currently it is the leading European manufacturer of wood-based sheet materials, operating in 21 countries. Total sales exceed EUR2.7 billion per year.
The European Bank for Reconstruction and Development (EBRD) could organize a syndicated loan of EUR 80 million for state-owned Ukreximbank (Kyiv) to support renewable energy and energy efficiency private investments in Ukraine.
According to a posting on the bank’s website, EBRD will provide EUR 40 million from own account.
The provision of the loan is pending the approval of the EBRD Board on June 19, 2019.
Ukreximbank, a wholly owned state bank, was established in 1992. It ranked third among 77 banks in Ukraine in terms of total assets worth UAH 232.064 billion as of January 1, 2019, according to the National Bank of Ukraine (NBU).
State-owned enterprise (SOE) Boryspil International Airport (Kyiv region) plans to repay UAH 3.6 billion of debt under a state-secured loan of the Japan Bank for International Cooperation (JBIC) received 10 years ago to build Terminal D in accordance with the issue terms.
“It remains for us to pay the Japanese bank UAH 3.6 billion at the current hryvnia exchange rate, which was attracted to build Terminal D. We paid about 20%,” Deputy Director General for Economics and Finance of the Boryspil airport Kyrylo Zvonarev said at a press conference at the airport on Thursday.
According to him, the total amount of the loan at the current exchange rate is almost UAH 5 billion and approximately UAH 1.4 billion was paid. He also said that according to the payment plan, the airport will repay the loan before 2032.
“Twice a year we have to pay approximately UAH 150 million,” the deputy director said.
At the same time, Zvonarev expressed concern that setting a rate of transfer to the national budget of the company’s net profit at 90% could put at risk the repayment of the said loan.
The European Investment Bank (EIB) has issued a long-term low-interest loan in the amount of EUR 200 million to the Cabinet of Ministers of Ukraine within the Early Recovery Program, Head of the EIB Representation in Ukraine Jean-Erik De Zagon has said, when opening six repaired medical facilities in Kharkiv.
According to him, the funds are used to invest in the restoration of key infrastructure objects in Donetsk and Luhansk regions, as well as to ensure adequate living conditions for internally displaced persons.
He noted that the purpose of the loan is to improve the living standards of people in Eastern Ukraine.
“Our Early Recovery Program was specifically developed to help people of Eastern Ukraine, including thousands of IDPs, deal with tough challenges they are facing following the armed conflict. This EUR 200 million program is part of our overall EUR 5.8 billion portfolio in Ukraine. It aims at improving living standards for people in terms of housing, healthcare and education. And it is a convincing proof that as an EU Priority Partner, Ukraine can greatly benefit from EU support and financing. We are happy to provide help where it is needed most and that it will directly impact the lives of ordinary citizens,” the banker said.
The European Bank for Reconstruction and Development (EBRD) could provide a loan of EUR 250 million to implement Ukraine Public Transport Framework II, according to a posting on the EBRD’s website.
According to the report, the decision to provide financing the EBRD board is to discuss on July 24, 2019.
“The EBRD will be signing loan agreements with respective companies and guarantee and project support agreements with respective cities. Each loan will be guaranteed by the respective municipality,” the bank said.
The investments will primarily focus on transport renewal (acquisition of new trolleybuses, buses, trams and metro cars as applicable) and the rehabilitation and/or modernisation of public transport infrastructure including automated fare collection, automatic vehicle location and traffic management systems.
As reported, in October 2015, the EBRD approved the provision of EUR 100 million under Ukraine Public Transport Framework.
U.S. Overseas Private Investment Corporation (OPIC) has repeatedly approved the provision of $6.407 million loan with twelve-year tenor to Ukrainian Catholic University of the Ukrainian Greek-Catholic Church in Lviv. According to a report of OPIC, the funds will be used for construction of a multi-purpose academic building and a residential building to expand the university campus.
The total cost of the project is $13 million. The U.S. sponsor is Ukrainian Catholic Education Foundation Inc., a not for profit corporation organized in Illinois.
According to the materials, with the expansion of academic and residential buildings, the university expects enrollment to increase by 50% in the coming years, while the school also expects to nearly double the number of need-based scholarships it offers for local students.
As reported, last year OPIC approved the similar project. Then the loan was $6.2 million with the total cost of the project of $12 million.
Ukrainian Catholic University was built in 2002.
