IFC will issue $35 mln loan to Galnaftogaz
The International Finance Corporation (IFC) will provide its long-term customer JSC Galnaftogaz Concern with a long-term corporate loan of $35 million to finance capital expenditures for 2020–2022 and to replenish working capital.
The IFC said on its website that the board of directors approved this project on June 18 this year.
It is assumed that the funds will be used to double the Galnaftogaz program to supply farmers with fuel and fertilizers (up to 200 customers), improve the logistics infrastructure, as well as extend and modernize seven oil depots and about 100 gas stations, including the installation of electric charging stations.
The documents indicate that the IFC was invited to provide a loan in the amount of $70 million, and the total project cost is estimated at $135 million.
A week earlier, a similar project for the same amount of $35 million for Galnaftogaz was approved by the European Bank for Reconstruction and Development (EBRD), which is a minority shareholder of the company.
Capital investments will include new gas stations under the OKKO brand, a new liquefied gas storage (LPG) in Brovary and two storage facilities for petrol and diesel fuel in Kherson on the river and the railway. According to the materials, the railway storage in Kherson has been recently acquired.