DFF - Project Dragon

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The Project consists of an engagement with Dragon Capital to i) fund capital expenditures for deep refurbishment of a c. 9,000 sqm gross lettable area (GLA) office building located in Kyiv and ii) refinance expenses related to the acquisition of two warehouses located in Kyiv and Kharkiv with a total of c. 26,000 sqm GLA. The total debt deployed by the EBRD will be USD 12.5m.

Project ID 51162

Status Complete

Location

Ukraine

Business Sector

Real Estate

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Volodymyr Tymochko
Volodymyr.Tymochko@dragon-capital.com
+380444927977
www.dragon-capital.com
36D Saksahanskoho Street Kyiv 01033 Ukraine

Project ID 51162

Status Complete

Location

Ukraine

Business Sector

Real Estate

Notice Type

Private

Environmental Category

Approval Date

24 Nov 2020

Disclosure date

27 Nov 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

DFF - Project Dragon (Ukrainian) (PDF, 0.43MB)

Project description

Project objectives

The Project will support the development of office building and retroactive financing of expenses related to the acquisition of Dragon Capital's portfolio, located in Ukraine.

Transition impact

ETI Score:62

ong>1) Green: The share of the EBRD use of proceeds qualifying as GET is 60% and it stems from the BREEAM certification ("very good" level) of the office building. The project also entails the introduction of green clauses in lease agreements.

2) Integrated: The Project enables significant net foreign direct investment inflows from Cyprus to the real estate sector in Ukraine through a joint venture.

Client information

DIANA LUX LOGISTICS LLC

Three limited liability special purpose vehicles organised in Ukraine and 100% owned by Diana Lux Logistic Holdings Limited (DLLHL), which in turn is 100% owned by Dragon Capital, a leading Ukrainian group of companies, which has a 20-year track record of private equity and real estate investments in Ukraine.

EBRD Finance Summary

USD 12,500,000.00

Total project cost

USD 32,800,000.00

Additionality

The Bank's additionality stems from i) filling a market gap in the Ukrainian real estate sector, by providing the necessary debt financing for the Project and ii) delivering EBRD's expertise to seek higher environmental standards.

Environmental & Social Summary

Categorised B under the 2014 ESP. Environmental & Social Due Diligence (ESDD) has been carried out by the EBRD's Environment and Sustainability Department and based on the review of the completed ESDD Questionnaire as well as follow up communication with the client. Environmental and Social (E&S) issues associated with retroactive financing of capital expenditure for the reconstructed and retrofitted office building and acquitted other two buildings (e.g. warehouse and warehouse/office) are relatively limited and readily addressed by standard procedures prescribed in an Environmental and Social Action Plan (ESAP) to be agreed with the client. The ESDD found that the client has adequate E&S risk management capacities, and their operations are in compliance with the law. The client produces an annual corporate responsibility report.

The above mentioned office building was certified as BREEAM "Very Good" in July 2020. The client's human resources and occupational and health and safety (OHS) policies and procedures are in line with EBRD Performance Requirements 2&4. The company has internal procedures that requires review of all subcontractors' legal compliance including provision of E&S legal compliance requirements into contracts. Further physical work for this project is reportedly limited. Permits, adequate fire protection measures and plans and emergency plans are in place for the three buildings. The ESAP to be agreed with the client addresses life and fire safety management, contractor labour & OHS issues and national Covid-19 requirement applicable for the project. The Bank will monitor the project's E&S performance by reviewing the annual E&S report as well as site visit if deemed necessary.

Technical Cooperation and Grant Financing

not applicable

Company Contact Information

Volodymyr Tymochko
Volodymyr.Tymochko@dragon-capital.com
+380444927977
www.dragon-capital.com
36D Saksahanskoho Street Kyiv 01033 Ukraine

PSD last updated

27 Nov 2020

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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DFF - Project Dragon

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)