Galnaftogaz Loan III



Project number:


Business sector:

Natural resources

Notice type:


Environmental category:


Approval date:

16 Oct 2013



PSD disclosed:

30 Aug 2013

Translated version of this PSD: Ukrainian

Project Description

The EBRD is considering providing a USD 80 million syndicated corporate loan package to Galnaftogaz. The financing is in partnership with IFC which intends to contribute USD 100 million syndicated loan.

The proposed investment will contribute towards financing of the Company’s investment plan which includes:

(i) Expansion of Galnaftogaz network of OKKO gas filling stations, convenience stores, coffee-shops and restaurants, the associated increase in working capital, and investments in energy efficiency.
(ii) Conversion of a portion of the short-term working capital loans, into a longer term-loan to meet increased permanent working capital requirements due to growth.

Transition Impact

The primary sources of transition impact of this transaction are expected to arise from:

Greater Competition in the Project Sector
Due to tight corporate finance market in Ukraine, continued EBRD support for GNG’s banking syndicate is essential to extend the existing transition impacts. In addition, this financing will provide incremental benefits in terms of improved quality and increased access to fuels and roadside services. In addition, there will be environmental and safety improvements to storage related facilities. The Project will focus on underserved areas to increase the share of high quality FS from 23% to 25% in South (mainly Crimea) and from 12% to 13% in North-East regions.
Setting Standards for Corporate Governance and Business Conduct
The Company is committed to continuous improvement in their energy efficiency (EE) corporate governance and as part of this investment programme intends to prepare and implement an updated EE program developed together with the Bank’s Energy Efficiency and Climate Change (E2C2) team. Main EE gains should come from:

  • tank storages renovation resulting in emissions reduction of petroleum products and amount of natural loss;
  • improvement of logistics that will decrease delivery distance from storages to gas filling stations and reduce diesel waste & CO2 emissions;
  • replacement of manual car washers to automated that do recycle water.

The Client

Public JSC Concern Galnaftogaz, an independent Ukrainian fuel distribution company operating a network of filling stations operating under the “OKKO” brand.

EBRD Finance

Facilitity consists of USD 80m loan from EBRD (including USD 20m A loan and USD 60m B loan).

Project Cost

USD 220 million.

Environmental Impact

Category B. The Bank’s relationship with Galnaftogaz has involved due diligence reviews and Project monitoring over a number of years. This work has been carried out in conjunction with the EHS team at IFC. At the time of the original investments, Environmental and Social Action Plans (ESAPs) were agreed with the Company to bring the operations into compliance with EBRD Environmental and Social Policy requirements.

The Company has provided appropriate Annual Environmental and Social Reports to the Bank which have indicated that progress with the agreed ESAP action items has been satisfactory. In March 2013, ESD staff visited Galnaftogaz in Lviv to discuss progress with key management; view the upgrades carried out at the Lviv terminal and a number of retail stations in the region; and review the plans in place to address the remaining action items on the ESAP. The visit identified that the works carried out to date have been implemented to a high standard, and that the Company currently operates the fuel distribution and retail business to international standards. The plans in place to initiate further terminal upgrades throughout Ukraine and provide for additional retail stations were noted to meet Bank policy requirements.

Technical Cooperation


Company Contact

Nazar Kupybida
Concern Galnaftogaz
72 Geroiv UPA St.Lviv, Ukraine 79015
Tel: + 38 032 298 96 44


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Share this page: