Nova Poshta raises USD 20 million loan to develop logistics hub in the west of Ukraine

Nova Poshta and Credit Agricole Bank have entered into a USD 20 million loan agreement. The loan will be repaid over a five-year period and will be used to expand the company’s logistics capacities in the west of Ukraine.

Specifically, these funds will be used to purchase two terminals in the Lviv region - one for postal operations and one for cargo - in order to further expand their capacity. Furthermore, the loan will be used to automate and expand the operational capacities of the terminals, with the installation of new, modern sorting lines planned. This should result in a threefold increase in the hub's capacity.

"NOVA Group has a large investment program and is continuously seeking optimal financing sources. This is not the first loan from Credit Agricole to Nova Poshta, and the new agreement represents a further strengthening of our strategic partnership. Given that the bank is headquartered in France and that we have recently opened our first branch in France, this cooperation will also have implications 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 at NOVA Group.

"Credit Agricole Group maintains an active presence in the country, offering ongoing support for the development and recovery process. We highly value long-term relationships and are pleased to contribute to the growth of our customers' businesses in Ukraine and abroad. Our goal is to make modern delivery services accessible to as many people as possible, and to establish the brand of Ukraine and Nova Poshta as a reputable presence on the international stage. Credit Agricole is one of Ukraine's top 10 banks and has been a reliable partner for Ukrainian businesses for 31 years. The bank offers its customers the benefits of high-quality European service and financial solutions in Ukraine and in other countries where it has a global presence," commented Igor Kuropiy, Head of International and Large Corporate Banking at Credit Agricole Bank.

About Credit Agricole Bank

Credit Agricole is one of the longest-standing foreign banks operating in Ukraine, with a history dating back to 1993. It offers a comprehensive range of banking services as a universal bank. The bank is part of the international Credit Agricole Group, headquartered in France. According to The Banker 2024, the Group is among the top 10 largest banks in the world by assets.

The Ukrainian head office of Credit Agricole is based in Kyiv and comprises 139 branches across the country. The Euromoney 2023 survey results have identified the bank as the leading provider of cash management services in Ukraine.

Credit Agricole contributes to the Ukrainian economy through the payment of UAH 3.3 billion in taxes and contributions in 2023. The profit was reinvested by the shareholder to increase capital for further development of its activities, including the launch of a new leasing business. During the war, the bank has allocated over UAH 144 million to procure medical equipment for Ukrainian hospitals and support victims.