GGF assists Novus in the construction of energy-efficient supermarkets

The Green for Growth Fund – GGF partnered with the European Bank for Reconstruction and Development (EBRD) to provide Novus with a USD 100 million senior loan to fund the development of energy-efficient supermarkets and Ukraine’s first green distribution center.

The Green for Growth Fund (GGF) 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 country’s first green distribution center compliant with BREEAM principles for the construction of environmentally sustainable buildings.

This is the fund’s first investment in a Ukrainian company

In Ukraine, the energy efficiency of Novus supermarkets will be 40% higher than the minimum standards. Novus is one of the major food retail chains in Kyiv, Ukraine’s capital and area. According to GGF, the new facilities are expected to have an energy performance increase of more than 40% over the minimal criteria set by the Ukrainian certification system.

Novus also plans to install energy management and monitoring systems at the additional sites. The projects call for energy-efficient equipment design, such as refrigeration systems with heat recovery for hot water production, as well as heating and air conditioning systems that employ heat pumps, cold source inverter units, heat recovery, and free cooling systems.

GGF is assisting the firm with its sustainability strategy and equipment upgrades

The GGF Technical Assistance Facility will also assist Novus in establishing a complete corporate sustainability plan in addition to the investment. The fund will also assist Novus with a refrigeration equipment upgrade plan, which will focus on replacing old equipment with more energy-efficient ones based on Freon technology and ammonia-free refrigeration, which is a first in the Ukrainian food retail sector, according to the fund.

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“We are delighted to work with the EBRD on this transaction because we believe Novus will help Ukraine’s food retail sector become more environmentally friendly.” We are particularly happy to be able to help Novus’ sustainability goal through our Technical Assistance Facility,” stated GGF Chairman Olaf Zymelka.

Novus Ukraine’s General Director, Mark Petkevich, stated that the firm wants to be one of the country’s most forward-thinking and environmentally conscious retail chains.

“We are delighted that GGF is joining the EBRD in supporting contemporary retail and logistics standards, with the development of the country’s first green distribution center in Kyiv, as well as new outlets around the country,” said Christian Kleboth, the bank’s Loan Syndications Director.

The Green for Growth Fund invests in initiatives that reduce energy use and CO2 emissions while also increasing resource efficiency. It lends money to renewable energy projects, corporations, and municipalities directly or indirectly through financial institutions.