DFF - Nibulon Trade WC Finance

Location:

Ukraine

Project number:

52900

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

29 Jun 2021

Status:

Disbursing

PSD disclosed:

02 Jul 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

A funded participation for up to EUR 25m equivalent in USD (the "EBRD Participation") in a three year syndicated revolving working capital facility of up to USD 100m (the "Facility") to Nibulon S.A. (the "Borrower") arranged by ING. The Facility will be in the form of a senior secured three year committed revolving loan to finance seasonal working capital needs associated with the trading operations of Nibulon Group.

Project Objectives

The EBRD Participation will support Nibulon Group in: i) assessing climate risks and impacts of its operations; ii) developing climate strategy, with a corporate climate governance enhancement action plan; and iii) continued development and maximise utilisation of river logistics networks.  

Transition Impact

ETI score: 73

Primary quality Well Governed: The project will support Nibulon to implement improvements in corporate climate governance, including a corporate climate governance enhancement plan, climate strategy and low carbon pathway.

Secondary quality Green: Nibulon will expand its agri-commodities volume throughput in its river transportation networks.

Client Information

NIBULON SA

Nibulon Group ("Nibulon" or the "Group") is an existing client of the Bank and a leading Ukrainian integrated grain/oilseeds exporter and producer, operating one of the largest logistics networks of grain storage and transportation in Ukraine. The Borrower will be Nibulon S.A., Nibulon Group's trading company incorporated in Switzerland and 100%-owned subsidiary of Nibulon Ltd., the Group's holding and main operating company.

EBRD Finance Summary

USD 30,000,000.00

Total Project Cost

USD 100,000,000.00

Additionality

EBRD offers a large volume instrument that fills a market funding gap and is required to structure the project.

EBRD's long-term relationship with a client provides comfort to the client to be willing to take on risks to pursue climate strategy along with a low carbon transition pathway; and the Client seeks to use EBRD expertise over energy and resource efficiency and climate resilience financing.

Environmental and Social Summary

Categorised B (2019 ESP). The provision of a working capital to an existing client is not associated with any new environmental or social risks or impacts. ESDD has been undertaken by ESD specialists in line with the ESD COVID-19 response and included a review of an ESDD questionnaire, annual E&S reports provided by the client to the Bank 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.

Currently the Client does not plan any labour restructuring or redundancies within the next two years. Should this change then the Client will need to prepare and submit to EBRD a Retrenchment Plan in line with PR 2. The Client will also maintain and regularly update the response plans related to labour management and stakeholder engagement to address COVID-19 related impacts. The client is required to continue to ensure that the new project complies with the PRs as well as submit an annual environmental & social report to the Bank.

Technical Cooperation and Grant Financing

The Project will have a Technical Cooperation (TC) component provided by Clean Technology Fund (CTF). The TC will support the development of Nibulon Group's climate strategy including Climate Corporate Governance enhancement plan, and low carbon pathway. 

Company Contact Information

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

PSD last updated

02 Jul 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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