Lviv, Ukraine, December 18th,
2007 — IFC, a member of the World Bank Group, is supporting the expansion
of modern petrol station network in Ukraine and refurbishment of the country’s
outdated petroleum distribution infrastructure. IFC is providing a $100
million long-term financing package to Galnaftogaz that consists of a $30
million direct loan, a $20 million subordinated loan, and $50 million in
syndicated loans raised from leading international banks. This is IFC’s
largest investment to date in the petrochemicals sector of the former Soviet
Union. The syndication was co-organized by the European Bank for Reconstruction
and Development, which is also providing $100 million in long-term financing
to the company.
Galnaftogaz is Ukraine’s leading oil
product distributor, operating 235 petrol stations under the OKKO brand
throughout the country. The expansion program will increase the number
of OKKO stations to 360 and create 600-1000 new jobs.
IFC has been a partner to Galnaftogaz
both as a long-term lender and as an advisor. The relationship dates
back to 2003, when Galnaftogaz participated in an IFC program to assess
and improve its corporate governance. IFC also helped the company establish
its corporate environment, health, and safety management systems and advised
the company on its long-term strategy. Recognizing the company’s commitment
to transparency and sound governance, IFC supported the company’s growth
with a $25 million loan in 2005.
“IFC’s long-term funding and assistance
in developing our corporate governance and environmental standards has
been instrumental in helping us get where we are today. The new financing
from IFC will help us reach the next level of growth, expand our activities
throughout the country, and continue to deliver the highest-quality products
and world-class service to our customers,” said Mr. Yuri Kuchabskiy, General
Director of Galnaftogaz.
“IFC values its partnership with Galnaftogaz.
The company has demonstrated strong commitment to transparency and to best
environmental, health, and safety practices. We look forward to continuing
our cooperation, which supports improvements in the country’s infrastructure
and helps create permanent jobs for Ukrainians,” said Lance Crist, Senior
Manager in IFC’s Oil, Gas, Mining, and Chemicals Department.
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that poor people have the
opportunity to escape poverty and improve their lives. In FY07, IFC committed
$8.2 billion and mobilized an additional $3.9 billion through loan participations
and structured finance for 299 investments in 69 developing countries.
IFC also provided advisory services in 97 countries. For more information,
please visit www.ifc.org
Ukraine became a shareholder and a member
of IFC in 1993. As of June 30, 2007, IFC has invested $742 million in 35
projects in Ukraine. IFC’s investment program is expanding rapidly with
a focus on the country’s financial, agribusiness, construction materials,
retail trade and services, energy, and infrastructure sectors. IFC
also offers advisory programs in Ukraine on corporate governance, leasing,
agribusiness, mortgage finance, and improving the business environment.
For more information, please visit www.ifc.org/ukraine
Information on Galnaftogaz
Galnaftogaz is an independent petroleum
products distribution company based in western Ukraine. Galnaftogaz
operates the third largest and one of the fastest growing networks of petrol
filling stations under its OKKO brand. All OKKO-branded stations
are built in a western format, comply with up-to-date technical and environmental
specifications, and offer various related products and services through
convenience stores and adjacent service sites. Currently, the Company
operates 235 stations, primarily in western and central Ukraine. Besides
petroleum retail, the Company also actively participates in the petroleum
wholesale market and provides logistics services to other distribution