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EBRD lends to Ukraine’s Coal Energy

2012-12-21 00:00:00

The European Bank for Reconstruction and Development is lending up to $US 70 million to Ukrainian mining group Coal Energy SA, which will use the loan proceeds to improve the efficiency and safety of its production capacities, located in eastern Ukraine, as part of an overall modernisation programme.

This facility will be provided in two equal tranches, the first of which will finance the waste coal recycling and coal processing operations of Coal Energy. The second tranche will be aimed at the development of recycling operations, health and safety upgrades as well priority energy efficiency measures.

On completion, this project will set a very positive safety benchmark for the Ukrainian coal mining sector., It also supports a waste coal recycling business, which has strong benefits for Ukraine in terms of efficient utilisation of energy resources, CO2 reduction and the recovering waste dump areas for future use.

The EBRD Country Director for Ukraine André Küüsvek said: “We feel it is very important to support private companies in the Ukrainian coal mining sector committed to introducing modern technologies and improving health and safety standards in the industry. This project is part of our sector strategy for Ukraine.”

The EBRD is the largest financial investor in Ukraine. As of the end of November 2012, the Bank had committed over €8 billion (US$ 10 billion) through 331 projects.