The European Bank for Reconstruction and Development provided a $20 million loan to support further expansion by Odessa-based shipping company, Black Sea Shipping Management Co Ltd. (BSSM). $10 million out of this loan was syndicated to Bank of Scotland, Trend Special Correspondent in Ukraine reports.
The project envisages post-delivery financing of five new dry cargo vessels of 5,500 deadweight each. The vessels will be commissioned at Kherson shipyard in south Ukraine.
Riccardo Puliti, the EBRD Transport Team Director, said this transaction is consistent with the EBRD strategy for Ukraine to provide further support for the shipping industry, a key area in the domestic transport sector. By signing this project the Bank has consolidated its position of a leading lender to the shipping industry in the country, he added.
There is growing demand for sea-river vessels due to the growth in export of freight such as grain, timber fertilisers, scrap and steel products from the Azov and the Black Sea region. The implementation of this project will help BSSM to maintain its ability to offer safe and reliable shipping services in the region as well as to establish the relevant shipping standards.
The EBRD has committed over в'¬400 million to transport sector projects in Ukraine.
The EBRD is the single largest financial investor in Ukraine, having committed to date a total of в'¬2.4 billion across all sectors of the country.