OREANDA-NEWS. December 03, 2013. The European Bank for Reconstruction and Development (EBRD) has signed a USD 80 million syndicated loan to its long-standing client, PJSC Galnaftogaz. The EBRD financing is part of a USD 180 million syndicated facility that was co-arranged with the International Finance Corporation, and involves the Black Sea Trade and Development Bank as a co-lender.

The EBRD syndicated loan consists of an “A” loan of up to USD 20 million for the EBRD’s own account, and a “B” loan of up to USD 60 million, which will be syndicated to Erste Bank, Raiffeisen International and UniCredit Bank.

The syndicated loan will support the investment programme of Galnaftogaz, which aims to open up to 60 new petrol stations primarily in the southern and north-eastern parts of Ukraine. The programme will help develop and improve the infrastructure for tank storage and liquefied petroleum gas modules, as well as to expand the network of quality convenience stores, coffee shops and restaurants. The programme will also be reinforced by a parallel financing facility of up to USD 100 million arranged by the International Finance Corporation.

Galnaftogaz, which has been a client of the Bank for over a decade, will now be expanding to parts of Ukraine where there is limited availability of such high-quality fuels and services for motorists. In the context of Galnaftogaz’s investment programme, the company, which has a network of almost 400 petrol stations across the country, has also committed to implementing a road safety management plan that will be the first initiative of its kind among private sector clients of the EBRD.