Kiev, Ukraine, January 30, 2013
—IFC, a member of the World Bank Group, is helping provide an $85 million financing package to build a network of gas filling stations in eastern Ukraine, bolstering the infrastructure for petrochemicals distribution and expanding access to high-quality fuel services across the country.
IFC will provide $30 million in debt financing to support the network, which is being built by a joint venture between leading Ukrainian fuel retailer Galnaftogaz and ADM Capital via its CEECAT Recovery Fund. The additional $55 million is being mobilized from the Dutch development bank FMO and UniCredit bank.
“Once again, our long-term international partner IFC is supporting our new initiative and will help us in achieving our strategic vision of strengthening our national brand and establishing a strong presence in Ukraine’s eastern regions of Donetsk, Dnipropetrovsk, Luhansk, and Zaporizhia,” said Vitaly Antonov, Galnaftogaz’s president.
ADM Capital's Investment Director, Florian Huth, said, "IFC’s financing shows how successful our joint venture has been so far and more importantly speaks of its growth potential. Syndications in today's uncertain markets are challenging but our joint project was able to raise financing with five- and seven- year tenors, which underlines its strong business fundamentals.”
Rufat Alimardanov, IFC Regional Head for Ukraine and Belarus, said, “We are providing long-term financing to help the eastern regions of Ukraine build a modern retail fuel infrastructure. Through the project we will support our long-term partners, which continue to invest, expand, and create jobs despite the challenging economic environment. IFC’s mobilization efforts will also help increase flows of commercial financing into Ukraine and contribute to the country’s economic development.”
This is IFC’s fourth engagement with Galnaftogaz, which owns and operates a network of 390 fuelling stations and employs over 5500 people. When IFC first engaged with GNG, it employed 2,000 people. IFC has also helped the company implement one of Ukraine’s first corporate governance codes, making it one of the country’s most transparent firms.
IFC, a member of the World Bank Group is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit