EBRD supports expansion of Kronospan operations in Ukraine
€116 million syndicated loan to launch new production,
promote energy efficiency
EBRD Ukraine, Kyiv , Ukraine,
Fri, June 7, 2019
- EBRD arranges syndicated loan of €116 million to LLC Kronospan UA
- €50 million to be taken on by commercial banks
- Investment will finance new production facility and energy efficient improvements
Ukraine’s potential in wood processing will receive a major boost with a syndicated loan of €116 million arranged by the EBRD to the leading company LLC Kronospan UA.
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.
Specialised 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.
The EBRD will be the lender of the record for the amount of €116 million, while €50 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 EBRD is the largest international financial investor in Ukraine. Since the start of its operations in the country in 1993, the Bank has made cumulative commitment of almost €13.1 billion through 418 projects in the country.