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DFF - Project Dragon



Project number:


Business sector:

Property and tourism

Notice type:


Environmental category:


Approval date:

24 Nov 2020



PSD disclosed:

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.

Project Description

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 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

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


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


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 and 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
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 EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 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 following its entry into force on 1 January 2020. 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 (e.g. 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 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; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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