EBRD supports expansion of Ukrainian retailer Novus

By Anton Usov

The EBRD is providing a senior loan of up to US$ 50 million to Novus Group, a rapidly developing retail chain in Ukraine. The loan will finance the expansion of the chain in Ukraine and improve sector competition by introducing modern food stores with benchmark health and safety measures and customer liaison principles.

The Bank’s loan will contribute to the development strategy of Novus and finance the construction of seven new stores by 2015. The project will help to satisfy the growing demand for modern retail space in Ukraine and improve the overall quality of services, which will be particularly important for the country’s fragmented and relatively underdeveloped food retail sector.

In the context of the project, Novus will organise direct purchases of certified organic food from Ukrainian farmers thus supporting primary domestic agriculture and providing food produce of better quality for the company’s customers. The transaction will also help Novus achieve energy savings and improve operational efficiency in line with the best international standards for the retail industry.

Sustainable energy efficiency measures at Novus’ stores were carried out with the support of financial aid from the Japanese Sustainable Energy Investments Fund.

The EBRD is actively supporting the development and expansion of modern retail chains in Ukraine, helping to increase access to good quality and affordable food products.

The EBRD is the largest financial investor in Ukraine. As of 1 January 2013 the Bank had committed over €8.2 billion (US$ 10.7 billion) through 318 projects in Ukraine, and over €6.9 billion (US$ 9.0 billion) through 451 projects in the agribusiness sector across its countries of operations.