Ukrainian postal and courier operator Nova Post has secured a €70m (US$77m) loan from the European Bank for Reconstruction and Development (EBRD) to finance its investment program for 2024.
The loan will be used to support future growth in the courier, express and parcel delivery segment in Ukraine by expanding Nova Post’s parcel locker network by a quarter and enabling it to run 24/7; updating hundreds of post offices and terminals; developing its branch network; and building more than 600 ‘safety capsules’ and shelters at its premises around the country.
“For us, this agreement is the logical next step in our long-term partnership with the EBRD, as well as the confirmation of the bank’s confidence in Nova Post as a reliable and stable partner. In addition, this is a recognition of the impact that the Nova Post development has on Ukrainian businesses and the economy at large,” said Petro Fokov, CFO of Nova Group.
The EBRD finance can be provided in Ukrainian hryvnia or euros and benefits from a first-loss guarantee covering 10% of the EBRD loan amount, which is provided by the Ukraine Investment Framework Municipal Infrastructure and Industrial Resilience (UIF MIIR) program.
Arvid Tuerkner, the EBRD’s managing director for Ukraine and Moldova, commented, “The loan will support the company’s long-term growth strategy, which envisages a transformation of its customer service model while keeping employees and clients safe in wartime.”
Addressing labor challenges
Responding to labor market shortages and workforce disruption, the EBRD’s technical support will help to improve human resources policies through a dedicated capacity-building program aligned with the company’s most pressing human capital needs. EBRD engagement will help Nova Post improve return-to-work pathways and in-work support systems for some 3,500 of its own staff currently serving in the army and other veterans returning to civilian life.
Nandita Parshad, managing director of the EBRD’s Sustainable Infrastructure Group, added, “We are supporting our longstanding client Nova Post in a project that will bring many benefits beyond purely commercial ones, such as enhanced safety, veterans reintegration and expansion of training opportunities for women. This is the type of project Ukraine needs the most during the ongoing war.”
The EBRD’s engagement will also help the company to fill critical vacancies by broadening access to training and employment opportunities for women workers, return migrants and others with funding support from the Bank’s Action for Equality and Gender Multi-Donor Fund.
Award nomination
Nova Post has been shortlisted in the Service Provider of the Year category in this year’s Parcel and Postal Technology International Awards. Find out if it wins in a live ceremony on October 22 at Parcel+Post Expo in Amsterdam! Click here to register for the event.