The provision of a € 3.3 million loan to provide working capital financing to Kormotech LLC in response to COVID-19 impact.
The financing will support Kormotech Group's strategy to maintain and expand its operations in Ukraine and other countries.
ETI score: 73
The Project is expected to help ensure that the transition impact under the previous project remains achievable and, once achieved, is preserved. The original transition impact stems from the following:
- Integrated quality: Making the cross-border greenfield investment of a Ukrainian company, through the construction of a new production facility located in Lithuania.
- Inclusive quality: Facilitating the expansion of specialised veterinary education in partnership with local universities across Ukraine to improve the employability of young professionals.
Kormotech is one of the top-3 pet food producers in Ukraine.
EBRD Finance Summary
The provision of a senior secured multicurrency loan in the amount of up to €3.3m (UAH 100 million), available in UAH and EUR.
Total Project Cost
€3.3 million (UAH 100 million)
Under RF, additionality stems from the following:
COVID-19 crisis response: the EBRD financing effectively bridges a liquidity gap due to adverse market conditions, e.g. the COVID-19 crisis.
Environmental and Social Summary
Categorised B (2019 ESP) and Low-Medium Risk. Investment to provide working capital to a pet food producer are site-specific and can be managed via implementation of the good E&S management practices. The Borrower is an existing EBRD Client who has recently been subject to in-house Environmental and Social Due Diligence which demonstrated that the Company is compliant with national E&S regulatory requirements; possesses adequate E&S management systems and the required certification; and has capacity to implement the Project in line with the PRs. The Client has been implementing the agreed ESAP and its progress will be assessed through the review of the Annual Environmental and Social Report (AESR). There is no GET component associated with the Project.
Technical Cooperation and Grant Financing
TC funds provided by the Japan-EBRD Technical Cooperation Fund to cover Project's external legal costs on a cost share basis.
Company Contact Information
+38 050 377 61 92
+38 032 298 98 32
Kormotech LLC 79041, 73, Heroyiv UPA Str., Lviv, Ukraine
PSD last updated
30 Jun 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
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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 email@example.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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.