EBRD supports green expansion of Ukrainian retailer Novus
28.08.2020 10:29 "Agro Perspectiva" (Kyiv) —
First green distribution centre to be built in Kyiv ● Syndicated loan of US$ 100 million for expansion of food retailer Novus ● Donor funds from European Union and Japan support first green distribution centre in Ukraine ● Up to US$ 35 million to be syndicated to commercial banks The European Bank for Reconstruction and Development (EBRD) and Ukraine’s food retailer Novus Group (Novus) are promoting modern retail and logistics standards, with the construction of the country’s first green distribution centre, in the capital, Kyiv, and new stores across the country. The EBRD is supporting Novus with a US$ 100 million financing package, up to US$ 35 million of which will be syndicated to commercial banks. The financing will facilitate the construction or refurbishment of more than 30 new Novus stores by the end of 2022, which will almost double the total number of the retailer’s supermarkets across Ukraine. Novus will also use the funds to build the first green distribution centre — a state-of-the-art logistics facility compliant with Building Research Establishment Environmental Assessment Method (BREEAM) principles for the construction of environmentally sustainable buildings. Freon and ammonia-free refrigeration systems, which will be installed in the centre, are a novelty in the Ukrainian food retail market. Operational in Ukraine and owned by the Lithuanian investors, Novus Group has been a key EBRD client in the country’s retail sector since 2013. The Bank’s financial assistance and expert advice have helped Novus become a benchmark in terms of its corporate social responsibly, integrity, environmental and social management principles. Grant funding for the project was provided by Japan and by the European Union through the EBRD Finance and Technology Transfer Centre for Climate Change (FINTECC). Novus is a multi-format Ukrainian food retailer with a workforce of more than 5,500 employees. It operates a chain of stores with a total gross area of more than 220,000 square metres. Since the launch of the business in 2009, Novus Group has focused on offering the highest retail standards to customers across the country. The EBRD is the largest international financial investor in Ukraine. To date, the Bank has made a cumulative commitment of almost EUR14.4 billion through 476 projects in the country.
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