The European Bank for Reconstruction and Development (EBRD) has granted a EUR 70 million loan to Nova Post Group to finance its 2024 investment program. According to the bank's press service on Tuesday, the loan is intended for upgrading and expanding the group's network.

"The loan will support the company’s long-term growth strategy, which envisages a transformation of its customer service model while keeping employees and clients safe in wartime," said Arvid Tuerkner, the EBRD's Managing Director for Ukraine and Moldova, as quoted in the press release.

Nova Group plans to build over 600 "safety capsules" and shelters at its premises around the country. According to Nandita Parshad, Managing Director of the EBRD's Sustainable Infrastructure Group, the financing will not only enhance safety but also support projects for veteran reintegration and expansion of training opportunities for women.

"This is the type of project Ukraine needs the most during the ongoing war," Parshad said.

The EBRD finance can be provided in Ukrainian hryvnia or euros and benefits from a first-loss guarantee covering 10% of the EBRD loan amount, which is provided by the Ukraine Investment Framework Municipal Infrastructure and Industrial Resilience (UIF MIIR) programme, the bank said.

"For us, this agreement is the logical next step in our long-term partnership with the EBRD, as well as the confirmation of the Bank's confidence in Nova Post as a reliable and stable partner. In addition, this is a recognition of the impact that the Nova Post development has on the Ukrainian businesses and the economy at large," said NOVA Group CFO Petro Fokov, as quoted by the bank.

Fokov said that EBRD representatives evaluate not only the project's financial metrics, but also the beneficial effects which it can bring on a national level.

"The funds are raised on favourable terms and on a scale which could not be available from most domestic banks," Fokov said.

The EBRD said that Russia's invasion of Ukraine in 2022 initially hit Ukraine's postal and delivery sector hard, but the parcel segment recovered quickly as people and businesses resumed their business activity. Nova Post has played a leading role in this recovery and now seeks to expand, which would in turn support the economic activity of small firms across the country.

EBRD engagement will help Nova Post improve return-to-work pathways and in-work support systems for some 3,500 of its own staff currently serving in the army and other veterans returning to civilian life. The EBRD’s engagement will also help the company to fill critical vacancies by broadening access to training and employment opportunities for women workers, return migrants and others with funding support from the bank's Action for Equality and Gender Multi-Donor Fund, according to the press release.

As is known, the co-owners of Nova Post Group are two Ukrainian businessmen, Viacheslav Klymov and Volodymyr Poperechny. The company's network, consisting of 27,200 points, employs 33,000 staff who serve 11 million customers monthly. In 2023, Nova Post Group delivered over 384 million parcels.