RF - Nibulon WC Loan

Location:

Ukraine

Project number:

52138

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

30 Jun 2020

Status:

Disbursing

PSD disclosed:

14 Jul 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

This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.

A senior secured loan of up to USD 27 million (the "loan") to Nibulon LLC (the "borrower") under the Resilience Framework. The loan will enable Nibulon LLC to secure sufficient working capital financing for the following seasons and support in further developing its trading activity in Ukraine amid the adverse impact of COVID-19 on its business.

Project Objectives

The loan will support Nibulon Group's liquidity for trading operations and help it withstand the COVID19-caused crisis. The operation will ensure that Nibulon remains committed to developing river transport networks and increasing inland grain procurement in new rural areas which were part of previous operations between the Bank and Nibulon Group.

Transition Impact

ETI score: 61

The operation will help ensure that Nibulon group preserves its ability to meet the transition impacts that were expected to be achieved as part of the previous transactions approved in 2017 and 2018.

Client Information

NIBULON LTD

A limited liability company incorporated in Ukraine, Nibulon LLC is a holding entity and the main operating and asset-holding company of the Nibulon group (the "Group", "Nibulon").

EBRD Finance Summary

USD 27,000,000.00

Total Project Cost

USD 27,000,000.00

Additionality

The EBRD financing is provided in the extraordinary circumstances of the COVID-19 crisis that have impacted broader economic activities, and limited  new lending opportunities in the market. Local banks, for instance, are reducing their working capital limits for existing clients.

Environmental and Social Summary

Categorised B (2019 ESP). The provision of short-term working capital to an existing client is not associated with any new environmental or social risks or impacts. ESDD has been carried out in line with the ESD COVID-19 response and included a review of an ESDD questionnaire, annual E&S reports provided by Nibulon, and publicly available information. The ESDD confirmed that the Company continues to be in compliance with national law, relevant EBRD PRs, is on track in implementing the existing ESAP, has maintained its institutional capacity for environmental & social risk management and is properly addressing OHS risks linked to the COVID response. No new E&S issues arise from the proposed operation, and Nibulon will continue to implement previously agreed ESAP and recently introduced COVID-response plan aimed at minimization of financial, operational, health and safety and social risks. There is no GET component associated with the Project.

Technical Cooperation and Grant Financing

The Project will have a Technical Cooperation (TC) component provided by the Japan-EBRD Technical Cooperation Fund. The TC funds will partially cover the legal due diligence costs.

Company Contact Information

Olga Babanina
OBabanina@nibulon.com.ua
Nibulon LLC 1 Kabotazhny Spusk, Mykolaiv, 54002 Ukraine

PSD last updated

14 Jul 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
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 how to submit a Request for review through our confidential online form, by emailmail 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.

 

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