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EBRD and IFC provide $200 million financing to Galnaftogaz
“OKKO” petrol stations expand throughout Ukraine
The EBRD is providing a $100 million financing package to OJSC Galnaftogaz to support the modernisation and national expansion of the group's OKKO petrol stations, Ukraine's leading petrol chain. The loan will also increase competition in Ukraine’s refining industry, currently dominated by Russian-owned refineries with tied distribution networks, by supporting a strong local corporate with a diversified supply base.
This transaction continues successful cooperation between the EBRD and Galnaftogaz which started in 2005 when EBRD provided a corporate loan of $25 million to the company.
The project is a part of the joint $200 million EBRD-IFC financing framework for OJSC Galnaftogaz, to be split evenly between the two financiers.
A senior loan of $80 million, a portion of which up to $50 million will be syndicated to commercial banks, and a subordinate mezzanine loan of $20 million, will finance modernisation and expansion of Galnaftogaz’s network of petrol stations across Ukraine.
The framework aims at completing the transformation of the company from a regional player based in Western Ukraine into a nationally recognised operator focusing on the provision of high quality facilities and services including multi-fuel stations, shops and restaurants. According to the investment programme, the current financing will help bring the total number of OKKO stations to over four hundred by 2016, almost doubling the OKKO brand network from its position today.
According to Riccardo Puliti, the EBRD Business Group Director for energy and natural resources, the purpose of the transaction is to consolidate the successful development and growth of OJSC Galnaftogaz as a high quality chain of domestic petrol stations and secure their position as a national player in the future.
The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of the end November 2007 it had committed over €3.12 billion through more than 156 projects.The EBRD is providing a $100 million financing package to OJSC Galnaftogaz to support the modernisation and national expansion of the group's OKKO petrol stations, Ukraine's leading petrol chain. The loan will also increase competition in Ukraine’s refining industry, currently dominated by Russian-owned refineries with tied distribution networks, by supporting a strong local corporate with a diversified supply base.
This transaction continues successful cooperation between the EBRD and Galnaftogaz which started in 2005 when EBRD provided a corporate loan of $25 million to the company.
The project is a part of the joint $200 million EBRD-IFC financing framework for OJSC Galnaftogaz, to be split evenly between the two financiers.
A senior loan of $80 million, a portion of which up to $50 million will be syndicated to commercial banks, and a subordinate mezzanine loan of $20 million, will finance modernisation and expansion of Galnaftogaz’s network of petrol stations across Ukraine.
The framework aims at completing the transformation of the company from a regional player based in Western Ukraine into a nationally recognised operator focusing on the provision of high quality facilities and services including multi-fuel stations, shops and restaurants. According to the investment programme, the current financing will help bring the total number of OKKO stations to over four hundred by 2016, almost doubling the OKKO brand network from its position today.
According to Riccardo Puliti, the EBRD Business Group Director for energy and natural resources, the purpose of the transaction is to consolidate the successful development and growth of OJSC Galnaftogaz as a high quality chain of domestic petrol stations and secure their position as a national player in the future.
The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of the end November 2007 it had committed over €3.12 billion through more than 156 projects.
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