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EBRD invests into major Ukraine petrol station operator
$50 million equity deal to support Galnaftogas’ operations and growth strategy
The EBRD has agreed to acquire a stake worth up to $50 million in OJSC Galnaftogaz, which operates Ukraine’s leading petrol stations chain OKKO.
The transaction will strengthen the balance sheet and liquidity position of the Bank’s long-standing client and help mitigate negative consequences of the financial crisis and local currency devaluation. It will also allow OJSC Galnaftogaz to continue its development strategy through selective acquisitions of new stations as well as modernisation of the existing service stations, including via energy efficiency measures.
As part of the project, OJSC Galnaftogaz will implement a Corporate Governance Program, which will make it one the top-ranking Ukrainian corporates in terms of transparency and governance.
This project is in line with the Bank’s Energy Policy, which places an emphasis on equity transactions in the sector as an important instrument to advance transition. According to the EBRD strategy for Ukraine, the Bank will focus on helping finance the development and expansion of quality retail providers of fuels, which is another prominent feature of this deal.
The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of 1 July 2009, it had committed €4.3 billion through 179 projects.
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