DFF - Winner Group

Location:

Ukraine

Project number:

51521

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

18 May 2021

Status:

Signed

PSD disclosed:

25 May 2021

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."

Project Description

EUR 20 million senior secured loan to Winner Group, US-owned leading Ukrainian importer and retailer of several well-known international vehicle brands. Financing will focus on green economy transition and circular economy through investments in new sustainable dealerships for Renault and Volvo, expansion of client's logistic capacities, distribution and service infrastructure for vehicles, including electric.

Project Objectives

All building financed by the Bank will obtain BREEAM or EDGE sustainable certification. Project contributes to the adoption of advanced green practices in a country where such standards and practices are still uncommon, for instance, according to the latest data, only 12 BREEAM certificates have been issued in Ukraine to date with only one certificate issued in the retail category.

Transition Impact

ETI score: 62

- Green: all buildings financed by the Bank will obtain BREEAM or EDGE certification, which will contribute to the Group's improved energy performance.

- Integrated: US shareholders will make substantial new contribution towards program's implementation at times when Ukraine experiences net FDI's outflow.

Client Information

WINNER IMPORTS UKRAINE LLC

Winner Imports Ukraine, is the largest company of Winner Group (the Group), a foreign direct investment with US capital and a leading Ukrainian importer and retailer of vehicles. The Group is widely recognised locally for setting higher standards of transparency and responsibility.

EBRD Finance Summary

EUR 20,000,000.00

Total Project Cost

EUR 43,000,000.00

Additionality

EBRD offers financing not available from the commercial banks, provides mechanisms for risk mitigation and helps to achieve higher standards including environmental and energy efficiency.

Environmental and Social Summary

Category B (2014 ESP). Environmental and social due diligence (ESDD) has been undertaken by the Bank's Environment and Sustainability Department based on a review of all available information, including a review of corporate management systems, interviews with the Company's representatives and a site visit. The review covered the existing facilities, and confirmed that they are in satisfactory condition and generally meet the Bank's Performance Requirements. All operational facilities are located in an urban area and do not have negative impacts on any sensitive receptors.

A review of the Company's corporate management system showed that it has well-established and integrated EHS management systems that have been developed in line with good international practice, and have been implemented throughout their operations.  Coordination, oversight and monitoring functions provided by the Company seek to ensure consistency in the approach to, and the management of, key EHS issues for new projects and operational activities. The Company has demonstrated its commitment to implement the Project in line with national and international environmental standards. Given the quality of their corporate management systems, it is expected that the environmental and social impacts associated with the Project will be readily mitigated and properly managed.

ESDD confirmed that all vehicles imported and distributed by the company comply with the highest vehicle safety rating under the European New Car Assessment Programme. 

An Environmental and Social Action Plan (ESAP) has been agreed with the Company to address the mitigation measures and improvements which will enable the Company to comply with the Bank's PRs. As part of the ESAP the Company will implement the following actions:

  • Maintain and continuously implementation of the principles of Corporate EHS management system at project level in line with ISO 14001, OHSAS 18001 and relevant EBRD PRs and develop EHS training plan for employees involved in the operation of new facilities and ensure its implementation.
  • Obtain all necessary Environmental, Sanitary, H&S and Fire safety permits prior to operation of the new facilities.
  • Carry out regular internal Environmental and Fire, H&S audits according to the national and EBRD requirements and ensure timely and effective implementation of the notices from Environmental, Sanitary, Health&Safety and Fire Safety state authorities.

The Company will undertake local disclosure of its environmental and social performance to the local public and report on that to the Bank on annual basis.

The Bank will monitor the Company's environmental and social performance and implementation of the ESAPs through annual E&S reports.

Technical Cooperation and Grant Financing

The preparation of the transaction has been supported with an energy audit with the help of Taiwan Business TC Fund and EU funding for Recovery TC funds partially covering legal due diligence costs.

In addition, a first loss guarantee of 20% will be provided through the EU-EBRD Municipal, Infrastructure and Industrial Resilience Guarantee Programme. The Guarantee Programme is funded by the European Union under its European Fund for Sustainable Development (EFSD). Through the EFSD, the EU supports investments in its neighbouring countries and in Africa to help achieve the sustainable development goals. In line with this objective, the EU-EBRD Programme supports sustainable investments in green city infrastructure, greening logistics chains, energy efficiency and green technology transfers in industrial processes, commercial operations and buildings.

Company Contact Information

Anastasiia Voitkevych
avoitkevych@winner.ua
+38(044) 585 63 00
+38(044) 585 63 01
https://winner.ua/

Implementation summary


PSD last updated

25 May 2021

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
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 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 compliance@ebrd.com. 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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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