Financed ProjectsGalnaftogaz III

Identification Code:

OP/11/0823

Total Operation Cost:

210.000.000

Maturity:

108 months

Operation Status:

Description and Purpose of the Operation:

Financing of the Galnaftogaz expansion program to further develop its network by 75 gas filling stations and the associated increase of working capital.

Countries of Operation:

Ukraine (100,00 %)

Financial Product:

Loans

Sector:

Consumer Discretionary

Domain:

Private

Borrower/Client:

PJSC "Concern Galnaftogaz" is an independent petroleum products distribution company in Ukraine. Galnaftogaz operates the third largest network of over 320 gas filling stations under the OKKO brand. Besides distribution of petroleum products, the Company participates in the consumer goods and services sales, petroleum wholesale market and provides logistics services to other distribution companies.

Co-Financiers/Participants:

IFC, EBRD, commercial banks

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

The operation will facilitate the development of the energy sector in Ukraine and will help to create hundreds of new jobs. It also demonstrates synergies of development institutions in providing much needed long-term financing in Ukraine.

Environmental Classification and Impact (summary):

Screened as B category. The Bank's prior experience in terms of EHS performance of the Borrower has been a positive one it is considered that the new operation is not likely to generate new impacts in addition to the ones already identified and assessed during Environmental Assessment of Galnaftogaz I and II operations. Under these loans the Borrower proved to employs relevant control, preventive and mitigation measures at all its gas filling stations and distribution network and be in compliances with existing subject legal requirements. As part of Galnaftogaz I and II operations the Borrower successfully implemented an Environmental Action Plan, designed jointly with the Bank, which aimed at further reduction of EHS impacts resulting from its gas filling stations.

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org