Ukrposhta to direct €23 million EBRD loan towards electric bicycles and commercial truck purchases
Investments match the original aim of the project – modernisation of logistical infrastructure and operational fleet of the company
The European Bank for Reconstruction and Development (EBRD) has decided to redirect €22.7 million from a €63 million loan granted to Ukrposhta in November 2020 towards the purchase of over 5,000 electric bicycles and around 350 commercial trucks.
This was reported in the bank's press release.
As reported by the EBRD, these new investments align with the original goal of the project – modernising the logistics infrastructure and operational fleet of the company.
The bank also reminded that in December 2022, it approved a €4.5 million co-investment grant funded by the EBRD's Shareholder Special Fund (SSF), supporting the purchase of satellite internet terminals and power generators for mobile postal vans.
In the first quarter of 2023, Ukrposhta reduced its net loss by 38% compared to the first quarter of 2022 – down to 403.82 million UAH, while revenues increased by 24.8% – up to 2 billion 778.87 million UAH.
Background. The EBRD loan envisioned three tranches: the 1st and 3rd, each with an eight-year term, amounting to €23 million and €10 million respectively, to finance the completion of the Rural Branch project, which involves purchasing new equipped vehicles (up to 1,900 units) for mobile post offices in 17 regions (3-in-1 devices), and the implementation of a new Front-office system for digitising and automating postal services.
The second tranche of €30 million, with a term of up to 12 years, was for financing the second half of the investment project for developing the logistics network.
As of the end of March 2023, €29.516 million of the €63 million loan had been received, with €1.917 million repaid. The loan rate is EURIBOR +1%.
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