Business news from Ukraine

EUROPEAN INVESTMENT BANK ISSUES EUR 200 MLN LOAN TO UKRAINE

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.

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EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT EBRD COULD PROVIDE EUR 250 MLN LOAN FOR PUBLIC TRANSPORT UPGRADING IN UKRAINE

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.

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UKRAINIAN CATHOLIC UNIVERSITY GETS $6.4 MLN LOAN FROM U.S. OPIC

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.

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EBRD COULD PROVIDE UKRENERGO WITH EUR 149 MLN LOAN

The European Bank for Reconstruction and Development (EBRD) could provide EUR 149 million to national energy company Ukrenergo for the project to modernize power transmission networks, the bank has said on its website.
The project has passed final review, pending board approval.
The loan will finance procurement of up to 26 new transformers and the automation and upgrade of 12 high voltage substations in key locations of the transmission network of Ukraine. The total project cost is EUR 198.2 million, including EUR 49.2 million of own funds of Ukrenergo.
The project will enable Ukrenergo to upgrade its key transmission infrastructure, required for synchronization with the European Network of Transmission System Operators for Electricity (ENTSO-E).
In addition, the modernization will result in substantial energy savings and associated CO2 emission reduction.

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UKRAINE GETS EUR 529 MLN LOAN UNDER WORLD BANK GUARANTEE

Ukraine on February 28 raised a loan of EUR 529 million from Deutsche Bank under the guarantee of the International Bank for Reconstruction and Development (IBRD, the World Bank Group), according to the website of the Ministry of Finance. The funds were received in two tranches: an A tranche in the amount of EUR240 million with maturity in four years and a B tranche in the amount of EUR289 million with a final maturity in ten years (four years and six months after raising the funds, the loan is subject to gradual repayment with certain amounts every half a year).
The second part of the guarantee in the amount of $375 million in the euro equivalent of the total amount of the World Bank guarantees of $750 million was used for the loan.
As reported, the World Bank Board of Executive Directors on December 18, 2018 approved the provision of guarantees to Ukraine in the amount of $750 million in support of state policy.

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MYRONIVSKY HLIBOPRODUCT TO GET EUR120 MLN LOAN FROM ING BANK

Myronivsky Hliboproduct Agroholding (MHP) will borrow EUR120 million (UAH 3.79 billion) in a loan from ING Bank N.V., PrJSC Zernoproduct MHP reported.
The company will act as a guarantor for this loan, it said in an announcement of the information disclosure system of Ukraine’s National Securities and Stock Market Commission.
PrJSC Zernoproduct MHP’s assets are estimated at UAH 6.103 billion, according to the latest financial statements. The ratio of loan value to asset value is 62%.
According to the MHP website, PJSC Zernoproduct MHP was established in 2004, it has 19 branches, two grain elevators, 23 dairy farms. Its land bank is 90,900 hectares.

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