Luxembourg and Kyiv, 12 October 2021 – The Green for Growth Fund (GGF) has contributed USD 20 million to the USD 100 million senior loan arranged by the European Bank for Reconstruction and Development (EBRD) last year for Ukraine’s food retailer Novus to finance the construction of new supermarkets and the first green distribution center in the country compliant with Building Research Establishment Environmental Assessment Method (BREEAM) principles for the construction of environmentally sustainable buildings. This transaction marks the fund’s first corporate investment in Ukraine.
Novus is one of the largest food retail networks in the capital city and region of Kyiv. The new facilities are estimated to have an energy performance improvement of over 40% against the minimum requirements defined by the Ukrainian certification system. Moreover, Novus intends to implement energy management and monitoring systems on the new facilities. This is alongside the energy efficient design standards, which include efficient equipment, such as refrigeration systems with heat recovery for hot water production, and heating and air conditioning systems, which include the use of heat pumps, cold source inverter units, heat recuperation and free cooling systems.
In addition to the investment, the GGF Technical Assistance Facility will assist Novus in developing a comprehensive corporate sustainability strategy. Furthermore, the Facility will support Novus with a renovation plan for refrigeration equipment, focused on replacing existing equipment with more energy efficient ones based on Freon technology and ammonia-free refrigeration, which are a novelty in the Ukrainian food retail market.
GGF Chairman Olaf Zymelka said: “We are excited to participate in this transaction with EBRD as we believe Novus can play an integral role in greening the food retail segment in Ukraine. We are also pleased that through our Technical Assistance Facility we can further support the sustainability agenda of Novus.”
EBRD Loan Syndications Director Christian Kleboth said: “We are very pleased GGF is joining EBRD in 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.”
Novus Ukraine LLC General Director Mark Petkevich said: “It is a pleasure for us to have GGF as a new partner along with EBRD in our pursuit of becoming one of the most forward-looking and green-oriented retail chains in Ukraine. We’re sure that our cooperation will be fruitful and beneficial for both sides.”