Financed ProjectsGalnaftogaz Financing

Identification Code:

OP/13/0044

Total Operation Cost:

220.000.000

Maturity:

84 months

Operation Status:

Description and Purpose of the Operation:

Provision of US$ 20 million long term debt financing to Public Joint Stock Company "Concern Galnaftogaz" (Galnaftogaz, GNG or Company) to finance, among others, the Company's capital expenditure program in Ukraine, particularly an expansion of its gas filling stations network and associated working capital requirements, and the refinancing of the GNG's short-term debt to improve the Borrower's financing structure (Project or Operation). The total Project cost is estimated at US$ 220 million (including US$ 40 million of internal Company cash financing).

Countries of Operation:

Ukraine (100,00 %)

Financial Product:

Loans

Sector:

Consumer Discretionary

Domain:

Private

Borrower/Client:

PJSC "Concern Galnaftogaz", a public joint stock company established pursuant to the laws of Ukraine.

Co-Financiers/Participants:

BSTDB, IFC and EBRD, as well as other commercial banks.

Guarantors/Sponsors:

Financial and Investment Energy Holding (FIEH)

Developmental and Regional Cooperation Impact:

The Project contributes to development of the retail petroleum sector in Ukraine and is expected to have economic benefits for the Ukrainian economy, the most relevant being the tax revenue gains and new job creation. The Company's improved corporate governance standards should also have a positive demonstration effect.

Environmental Classification and Impact (summary):

Screened as Category B. Galnaftogaz had been a Client of the Bank since 2004 and under the previous operations (GNG I, II and III) the Company had implemented a series of actions that were aimed at improving its EHS management system, preventing pollution and abatement of existing impacts, and upgrading its fuel storage facilities. The accumulated experience in terms of following the Bank's EHS requirements, including the terms and conditions of financing, implementation of ESAP, monitoring and reporting, as well as achieving compliance with national norms and international good practices has been positive. As part of financing GNG will implement an ESAP and will report on annual basis on its implementation and general EHS performance, including the technical, safety and environmental protection measures implemented at its filling stations.

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org