AVELLUM advises EBRD on UAH/EUR

multi-currency loan to Nova Poshta

AVELLUM acted as the

Ukrainian legal counsel to the European Bank for Reconstruction and Development

(“EBRD”) in connection with a senior secured loan of up to

EUR9.5 million to Limited Liability Company “Nova Poshta” (“Nova Poshta”).

This is one of the first

UAH/EUR multi-currency loan extended to a Ukrainian company by EBRD. The loan

employs innovative UAH/EUR multi-currency mechanics aimed at reducing the

interest rate cost of the foreign exchange risk. This helps to achieve a better

cost of funding in UAH, which would further strengthen EBRD’s position in local

currency lending in Ukraine.

The loan proceeds will be

used to (i) finance the design and construction of a new automated parcel-sorting

terminal in the city of Khmelnytskyi and (ii) purchase the equipment for

the terminal. Once operational, the terminal will allow Nova Poshta to

(i) enhance the efficiency of its human resource use and

(ii) optimise its operating costs.

EBRD is the largest

international financial investor in Ukraine. To date, EBRD has made a

cumulative commitment of almost EUR12.1 billion across some 400 projects since

the start of its operations in the country in 1993.

Nova Poshta is the leader in

express delivery in Ukraine, with 2,300 depots all over the country. Nova

Poshta offers international delivery services to over 200 countries and employs

more than 23,000 people.

The

AVELLUM team was led by senior partner Glib Bondar, with support from counsel

Taras Dmukhovskyy and associates Tetiana Mykhailenko, Orest Franchuk, Oleg

Krainskyi, and Anna Mykhalova.