The Green for Growth Fund – GGF joined the EBRD in providing a USD 100 million senior loan to Novus to finance the construction of energy-efficient supermarkets and the first green distribution center in Ukraine.

The Green for Growth Fund (GGF) has contributed USD 20 million to a USD 100 million senior loan arranged by the European Bank for Reconstruction and Development (EBRD) last year for Ukraine’s food retailer Novus to finance the construction of new supermarkets and the first green distribution center in the country compliant with Building Research Establishment Environmental Assessment Method (BREEAM) principles for the construction of environmentally sustainable buildings.

The transaction is the fund’s first corporate investment in Ukraine.

Novus supermarkets’ energy efficiency will be 40% above requirements in Ukraine

Novus is one of the largest food retail networks in the capital city and region of Kyiv. The new facilities are estimated to have an energy performance improvement of over 40% against the minimum requirements defined by the Ukrainian certification system, GGF said.

Moreover, Novus intends to implement energy management and monitoring systems on the new facilities. The projects imply energy-efficient design for the equipment, such as refrigeration systems with heat recovery for hot water production, and heating and air conditioning systems, which include the use of heat pumps, cold source inverter units, heat recuperation and free cooling systems.

GGF helping company in sustainability strategy, equipment overhaul

In addition to the investment, the GGF Technical Assistance Facility will assist Novus in developing a comprehensive corporate sustainability strategy. Furthermore, the facility will support Novus with a renovation plan for refrigeration equipment, focused on replacing existing equipment with more energy-efficient ones based on Freon technology and ammonia-free refrigeration, which are a novelty in the Ukrainian food retail market, the fund added.

Novus will introduce Freon technology and ammonia-free refrigeration

“We are excited to participate in this transaction with EBRD as we believe Novus can play an integral role in greening the food retail segment in Ukraine. We are also pleased that through our Technical Assistance Facility we can further support the sustainability agenda of Novus”, GGF Chairman Olaf Zymelka said.

General Director of Novus Ukraine Mark Petkevich said the company aspires to become one of the most forward-looking and green-oriented retail chains in the country.

“We are very pleased GGF is joining EBRD in promoting modern retail and logistics standards, with the construction of the country’s first green distribution center, in the capital, Kyiv, and new stores across the country,” the bank’s Loan Syndications Director Christian Kleboth said.

The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions, and improve resource efficiency. It provides financing directly to renewable energy projects, corporates and municipalities or indirectly via selected financial institutions.