EBRD to provide Ukraine’s OKKO with $35mn loan
Part of the proceeds from the European Bank for Reconstruction and Development will be allocated to improve OKKO gas stations network.
The European Bank for Reconstruction and Development (EBRD) has opened a $35 million credit line to the OKKO network for a period of 7 years. The funds will be used to finance the company's capital expenditures and meet its working capital needs, which will allow OKKO to develop both started and new projects.
The company plans to use the funds raised to expand its forward program to provide agricultural producers of Ukraine with material and technical resources, such as fuel, mineral fertilizers, natural gas, finance, etc. In addition, part of the loan proceeds will be used to improve the logistics infrastructure, as well as to improve OKKO gas stations network.
"The history of cooperation of our company with the EBRD goes back almost 20 years. Thanks to the financial support of leading international institutions, OKKO has grown from a small regional enterprise into a holding on a national scale. The EBRD's willingness to continue this partnership and invest in projects in Ukraine is an important positive signal not only for us, but also for the entire national business," OKKO Group founder Vitaliy Antonov said.
OKKO received its first loans from the EBRD in 2002-2003 within the framework of a program supporting small and medium business in Ukraine. The relatively small loans (USD 1.2-1.3 million each) helped OKKO to build a number of modern gas stations in Kyiv and Western Ukraine and to gain a foothold in these markets. Today, the total amount of OKKO loan financing from the EBRD has already exceeded 270 million USD. In 2009, the European Bank for Reconstruction and Development became a shareholder in OKKO, becoming its minority co-owner.
OKKO fuel station network (Galnaftogaz Concern) is part of the OKKO Group and is one of the largest filling networks in Ukraine, with about 400 filling facilities. OKKO also operates the largest network of on-road catering establishments under the brands Hot café, A la minute, Pasta Mia and Meiwei.
