Avellum has acted as Ukrainian legal counsel to the EBRD in connection with a senior secured loan of up to EUR 10 million, made with the option to increase the loan up to EUR 25 million, to Private Joint-Stock Company Kyiv Cardboard and Paper Mill.
According to Avellum, the loan will be partially financed by the Global Environment Facility and will be used by KCPM to boost energy efficiency and reduce CO2 emissions. The project will be one of the first project financing deals to comply with Industrial Emissions Directive 2010/75/EU, Integrated Pollution Prevention and Control. It will essentially create the first production cycle in the country that implements the EU principles of using fewer resources and increases energy efficiency. Overall, the project will reduce KCMP’s annual CO2 emissions by up to 11,000 tonnes.
KCPM is part of the Austrian Pulp Mill Holding. In terms of total output, the facility is responsible for approximately 30% of all paper products manufactured in Ukraine.
The Avellum team was led by Senior Partner Glib Bondar and included Counsel Maria Tsabal and Associates Orest Franchuk and Anna Mykhalova.
Avellum did not reply to an inquiry about the deal.
