Nova Poshta has signed a USD 20 million loan agreement with French bank Credit Agricole to develop its logistics hub in Lviv.
Nova Poshta and Credit Agricole Bank have signed a USD 20 million loan agreement. The loan is for a 5-year term and will be used to expand the company’s logistics capacities in western Ukraine.
In particular, the funds will finance the purchase of two terminals in Lviv region (a mail terminal and a cargo terminal) to further expand their capacity. In addition, the loan provides for the automation and increase of the terminals’ operational capabilities – it is planned to install new modern sorting lines. All this should triple the hub’s capacity.
“NOVA Group has a large investment programme and is constantly looking for the best sources of financing. This is not the first loan to Nova Poshta from Credit Agricole and the new agreement is a consistent development of our strategic cooperation. Given that the bank is headquartered in France and we have recently opened our first branch in France, this cooperation will also have prospects for our future development in the EU. When the time comes to finance large-scale international projects, we want to have a reliable credit reputation with leading European banks,” says Petro Fokov, CFO of NOVA Group.
“Credit Agricole Group continues its active presence and assistance in the development and recovery of the country. We value our long-term relationships and are happy to contribute to the development of our customers’ businesses in Ukraine and abroad, so that as many people as possible can experience the benefits of modern delivery services and the brand of Ukraine and Nova Poshta can be proudly heard on the international stage. Credit Agricole is one of the TOP-10 largest banks in Ukraine and has been a reliable partner for Ukrainian business for 31 years. The bank offers its customers the benefits of high-quality European service and financial solutions both in Ukraine and in other countries of its global presence,” commented Igor Kurupiy, Head of International and Large Corporate Banking of Credit Agricole Bank.