Sayenko Kharenko acted as legal counsel to the European Bank for Reconstruction and Development (EBRD) on providing the EUR 40 million loan to Kronospan UA, a wood-based panel producer, to finance its capital expenditure.
The project assumes upgrading of the key production facilities and equipment. The financing raised under the project will also be used by Kronospan UA to invest into a new biomass boiler that should allow to significantly reduce greenhouse emissions. Kronospan UA will be the first wood-panel producer installing such a boiler on site and will set the standard for energy and waste efficiency in the sector.
The total project cost is EUR 67 million, of which EBRD provides EUR 40 million and the rest EUR 27 million will be complemented by Kronospan’s own funding. Kronospan UA is a Ukrainian subsidiary of Kronospan Holdings East Limited, Cyprus. Kronospan Group is the market leader in the wood-based panel sector. It manufactures wood-based panel products at over 40 sites in 27 countries. The company currently employs over 14,000 people and has revenues in excess of EUR 4.5 billion a year.
The EBRD is the largest international financial investor in Ukraine. As of 1 March 2016, it had a total cumulative commitment over EUR 12 billion in 363 projects throughout the country.