EBRD offers $100m to Novus for construction of green distribution centre and stores

WCN Editorial Team 31 Aug 2020 EUROPE BUILDINGS

The European Bank for Reconstruction and Development (EBRD) has agreed to finance Ukraine-based food retailer Novus Group with $100m for the construction of a new green distribution centre in Kyiv along with new stores across Ukraine.

Novus Group said that the distribution centre and the new stores are part of a $200m investment programme for infrastructure development and network scaling.

The $100m that EBRD has agreed to provide will include a $35m loan syndicated to commercial banks.

By the end of 2022, the company plans to build and equip over 30 stores, an exercise which will nearly double the number of Novus supermarkets across Ukraine.

According to Novus, its first green distribution centre will be a state-of-the-art logistics facility, taking up 40,000m² of space while complying with Building Research Establishment Environmental Assessment Method (BREEAM) principles to build environmentally sustainable buildings. It also plans to equip the new facility with Freon and ammonia-free refrigeration systems, which are novel attraction for the Ukrainian market.

The distribution centre is expected to significantly improve the company’s supply chain to its stores and optimise its transportation and logistics, while reducing delivery time.

NOVUS general director Mark Petkevych said: “The conclusion of this large-scale agreement is a huge step forward, a new stage in the rapid and high-quality development of the network, the introduction of global progressive innovations. International quality standards, customer focus and process improvement are always a priority for us.

“This loan is a great support for the expansion of the market, as well as the implementation of 'green' initiatives of NOVUS. This is proof that the company has reached the required level of business maturity to earn the trust of the largest international financial investor in Ukraine.

“We thank the owners of the company and our EBRD partners for supporting the 'green' investment and significant contribution to the expansion of our network. Thank you for your trust and faith in our company.”

Grant funding for the project is being offered by Japan and the European Union through the EBRD Finance and Technology Transfer Centre for Climate Change (FINTECC).

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A Novus supermarket in Ukraine. (Credit: NOVUS.)

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