Sayenko Kharenko acted as legal counsel to the European Bank for Reconstruction and Development (EBRD) on providing up to EUR 116 million loan to Kronospan UA, a manufacturer of wood-based panels, to finance its capital expenditure.

Sayenko Kharenko acted as legal counsel to the European Bank for Reconstruction and Development (EBRD) on providing up to EUR 116 million loan to Kronospan UA, a manufacturer of wood-based panels, to finance its capital expenditure.

The funds will be used for the construction of new oriented strand board (OSB) production facility in Novovolynsk, Ukraine. As part of the project Kronospan will also invest into construction of own transformer substation, a 45 MW bio-mass boiler and WESP filter at the site to provide an alternative power supply solution and help reduce dust emissions. Kronospan UA is a Ukrainian subsidiary of the world’s leading manufacturer of wood-based panels. Products of Kronospan are used in everything from flooring and furniture to timber-framed houses. It manufactures wood-based panel products at over 40 production sites in 21 countries.

The EBRD is the largest international financial investor in Ukraine. Since the start of its operations in the country in 1993, the Bank has made cumulative commitment of almost EUR 13.6 billion in 432 projects throughout the country.

Sayenko Kharenko’s team was led by counsel Igor Lozenko and included associates Denis Nakonechnyi, Vira Pankiv and junior associates Vladyslava Mitsai and Oleksandra Maksymenko with support from senior associate Tymur Enkhbaiar on the real estate-related issues.