EBRD provided a senior loan of up to EUR 15 million to I&U Group
The EBRD provided a senior long-term loan of up to EUR 15 million to I&U Group, a vertically integrated agricultural holding engaged in crop farming and sugar production in Ukraine.
The funds will be used to finance the development, construction and operation of a 6 MW biogas plant located in the Kirovograd region of central Ukraine.
The financing package will consist of a EUR 13 million loan from the EBRD and a EUR 2 million concessional loan from the Clean Technology Fund (CTF) designed to support renewable energy and technology aimed at reducing carbon intensity.
"This will be the first facility in Ukraine to use an innovative biogas production technology, which will reduce energy consumption. The remaining residues of the biogas process will be used as bio-fertilisers, partially replacing the use of chemical fertilisers. The project will result in a total reduction of 24,000 tons of CO2 emissions annually," commented Anton Usov, Chief Spokesman Eastern Europe, Caucasus, Central Asia at EBRD.
The project will benefit from a US$ 534,800 incentive grant from the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme, funded by the Green Environment Facility and designed to transfer technology in the area of climate change mitigation and adaptation, as well as a €22,150 grant from the European Union’s Neighbourhood Investment Facility.
The facility construction completion is due by the end of 2019.
