Equity investment for an up to 35% stake in a joint venture (the "JV", the "Company") with Dragon Capital Investment Limited ("DCI", the "Sponsor") with the purpose of developing Lviv Industrial Park, a modern multi-phase multi-tenant industrial park located at the borders of the city of Lviv, Ukraine (the "Project"). EBRD's investment in Phase 1 will be up to USD 5.5m. The total equity to be invested by EBRD in the Project through the JV will be up to USD 24.5m (including Phase 1 and future phases).
The Project will enable the Sponsor to develop Lviv Industrial Park and hence provide much needed industrial and logistics warehouse space in Western Ukraine. This will help to expand access to vital services and products, which are essential to sustain livelihoods in Ukraine and include food, health and emergency services.
ETI score: 70
1) Inclusive - The Sponsor will expand access to vital services and products, which are essential to sustain livelihoods and include food, health, and emergency services by providing much needed warehouse infrastructure in Ukraine.
2) Green - The Sponsor commits to achieving at least BREEAM "Good" or an equivalent green building certification for the Project and will thus address the low supply of green buildings in Ukraine.
DRAGON CAPITAL INVESTMENTS LTD
Dragon Capital Investment Ltd is a limited liability company incorporated in Cyprus and is part of Dragon Capital (the "Group"), Ukraine's leading investment and financial services firm established in 2000. Dragon Capital is one of the largest private investors in Ukrainian real estate.
EBRD Finance Summary
Total Project Cost
The Bank's additionality in the Project stems from several sources, including i) the Bank's Crisis response, as the Bank is effectively bridging a financing gap due to adverse market conditions; ii) the lack of adequate local equity markets; and iii) risk mitigation.
Environmental and Social Summary
Categorised B (2019 ESP). The Project has already been subject to the ES Due Diligence ("ESDD") that was carried out internally in 2021 as part of a previous project. It has been confirmed that any environmental & social ("ES") issues related to construction & operation of a warehouse will be limited and readily addressed by standard mitigation measures and the Sponsor has environmental and social management systems largely compliant with the EBRD requirements. Necessary mitigation measures to address potential E&S impacts, including implementation of the life and fire safety master plan and improvement of contractor management and labour & OHS management have been included into the environmental and social action plan ("ESAP") and agreed with the Sponsor. The Project will be monitored in terms of its environmental and social performance and implementation of the ESAP through annual E&S reports and site visits when deemed necessary.
Technical Cooperation and Grant Financing
Company Contact Information
PSD last updated
24 Nov 2022
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Independent Project Accountability Mechanism (IPAM)
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