EBRD allocates loan of up to EUR50 mln to Nova Poshta

The European Bank for Reconstruction and Development (EBRD) has allocated a loan of up to EUR50 million to Nova Poshta LLC from the Nova Group of Companies to finance part of the capital investment program for 2025-2026.

As noted in the bank's press release on Friday, the loan will be multi-currency with the possibility of withdrawing funds in hryvnia and euros and will consist of two tranches: the first tranche of EUR35 million will be provided from the moment of signing, the second of EUR15 million will be reserved by the bank exclusively at its own discretion.

According to the release, Nova Poshta’s development strategy supported by the loan includes improving physical infrastructure, optimizing and expanding the network, modernizing IT systems, improving energy management and restoring human capital, as well as decarbonization and greater access for women.

The total project value, according to the release, is EUR69.1 million.

"The EBRD finance can be provided in Ukrainian hryvnia or euros and benefits from a first-loss guarantee covering 15% of the EBRD loan amount, which is provided by the European Union under the Ukraine Investment Framework Municipal Infrastructure and Industrial Resilience (UIF MIIR) program. It is also expected to benefit from an investment grant of up to EUR1.5 million to support the decarbonization and human capital recovery programs, supported by the TaiwanBusiness – EBRD Technical Cooperation Fund and Crisis Response Special Fund (CRSF)," the bank said.

"In 2024, Nova Poshta set a new record by delivering 429 million shipments – 16% above its 2023 figure. Strong growth in demand has in turn created the need for further expansion," reads the report.

Nova Poshta is the main operating subsidiary of Nova Group, owned by two Ukrainian businessmen Viacheslav Klymov and Volodymyr Popereshniuk. It operates a network of over 39,000 service points and has about 33,000 employees in Ukraine, serving over 11 million customers every month.

The EBRD has been successfully cooperating with Nova Poshta since 2018, during which time it has financed four Nova Poshta projects.