EBRD Backs Nova Post’s Expansion with €70 Million Loan to Boost Ukraine’s Delivery Services Amid Wartime Challenges

EBRD Backs Nova Post’s Expansion with €70 Million Loan to Boost Ukraine’s Delivery Services Amid Wartime Challenges

(IN BRIEF) The EBRD is lending €70 million to Ukraine’s Nova Post to support its 2024 expansion plans, which include enhancing delivery services and building over 600 bomb shelters. The loan will help Nova Post maintain operations during wartime, support veterans’ reintegration, and expand training opportunities for women. Nova Post, a key player in Ukraine’s postal and courier sector, continues to drive economic activity despite the ongoing conflict.

(PRESS RELEASE) LONDON, 13-Aug-2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is providing a €70 million loan to Ukraine’s leading postal and courier service provider, Nova Post, to support its ambitious expansion plans for 2024. This investment will aid Nova Post in enhancing its delivery services across the country, which is crucial for maintaining business operations during the ongoing conflict.

Arvid Tuerkner, the EBRD’s Managing Director for Ukraine and Moldova, emphasized that the loan will back Nova Post’s long-term strategy to transform its customer service model while ensuring the safety of employees and clients amid the challenging wartime environment.

Nandita Parshad, Managing Director of the EBRD’s Sustainable Infrastructure Group, highlighted the broader impact of this project, noting that it not only supports commercial goals but also contributes to safety enhancements, veterans’ reintegration, and expanded training opportunities for women. “This is the type of project Ukraine needs the most during the ongoing war,” she said.

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

Petro Fokov, CFO of NOVA Group, expressed the significance of this agreement, stating, “This loan is a logical next step in our long-term partnership with the EBRD and a confirmation of the Bank’s confidence in Nova Post as a reliable and stable partner.” He added that the funds are raised on favorable terms that are typically not available from domestic banks, underlining the project’s potential to positively impact Ukraine’s economy.

Since Russia’s invasion in 2022, Ukraine’s postal and delivery sector has faced significant challenges, but Nova Post has been at the forefront of the sector’s recovery. The company now plans to expand further, which will support the economic activities of small businesses across the country. Their growth strategy includes expanding the parcel locker network by 25%, upgrading post offices and terminals, and constructing over 600 “safety capsules” and shelters nationwide to protect staff and customers.

The EBRD’s technical support will also help Nova Post address labor shortages by improving human resources policies and building capacity in critical areas. This includes aiding the reintegration of around 3,500 employees currently serving in the military and other returning veterans. Additionally, the EBRD’s involvement will broaden access to training and employment opportunities for women, return migrants, and other underrepresented groups, supported by the Bank’s Action for Equality and Gender Multi-Donor Fund.

Nova Post, a subsidiary of Nova Group, operates over 30,000 service points across Ukraine, employing around 33,000 people and serving over 11 million customers monthly. In 2023, the company delivered more than 412 million shipments.

The EBRD remains Ukraine’s largest institutional investor, having committed €4.5 billion since 2022 and securing an additional €4 billion capital increase to maintain lending during the war, with the potential for further investment during the country’s eventual reconstruction.

Media Contact:

Tel: +44 207 338 7805
Email: Group-PressUnit@ebrd.com

SOURCE: EBRD