The provision of a senior loan up to € 150 million to provide emergency liquidity support to PJSC "Ukrainian Railways" (the "Company", "UZ"), an existing client of the Bank, in order to mitigate the effect of the COVID-19 crisis (the "Project" or the "Facility"). The Facility will be secured by a pledge over the Company's existing rolling stock. The Project is presented as part of the Vital Infrastructure Support Programme ("VISP") under the EBRD's Solidarity Package 2.0.
The proceeds of the loan will finance emergency liquidity support to provide UZ with working capital needed for its operations.
ETI score: 65
Primary Quality - Resilient: The operation is part of the Bank's COVID-19 Solidarity Package and is presented under the VISP. The Bank's loan will be used to support the immediate working capital needs of the Company, ensuring the Company's logistical operations capacity is adequately preserved throughout and beyond the COVID-19 pandemic.
Secondary Quality - Competitive: The project will support wider rail sector governance reforms through the implementation of the Corporate Governance Action Plan (CGAP) for UZ's subsidiaries under the Regional Programme for Improving Corporate Governance in Selected the EBRD Investee Companies and Banks, development of a stand-alone anti-corruption action plan and its implementation, introduction of procurement certification.
UKRAINIAN RAILWAYS PJSC
Ukrainian Railways PJSC is a vertically-integrated railway company fully owned by the Govrenment of Ukraine. The Company was established as a public joint stock company in October 2015, via reorganisation of the former State Administration for Railway Transport of Ukraine, as part of the ongoing railway sector reform.
EBRD Finance Summary
Total Project Cost
Financing structure: Crisis response - the EBRD financing is provided under extraordinary circumstanses of the COVID-19 crisis and effectively bridges a liquidity gap due to adverse market conditions. Public sector - the EBRD investment is needed to close the funding gap complementing other sources, such as from IFIs, government, commercial banks.
Environmental and Social Summary
Categorised B (2019 ESP). The provision of short-term working capital is not associated with any new environmental or social risks or impacts. Due diligence for this transaction will comprise a review of the company's annual report, its corporate environmental protection plan and progress with implementation of the environmental and social action plan (ESAP) for the Bank's previous projects. This solidarity loan does not require additional monitoring or reporting. EBRD will continue to monitor UZ's environmental and social performance via reporting for the previous transactions.
Technical Cooperation and Grant Financing
TC 1 - Preparation of an Anti-Corruption Action Plan and support to the Company with its implementation.
TC 2 - CGAP for the Company's subsidiaries under the Regional Programme for Improving Corporate Governance in Selected EBRD Investee Companies and Banks.
Company Contact Information
Mr. Andriy Fedoseev, Acting Investment Policy Director
5 Tverska Yezhy Giedroytsya) St., Kyiv, 03150, Ukraine
PSD last updated
22 May 2020
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More information on the EBRD’s practices in this regard is set out in the ESP.
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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).
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