The sponsor of the project is CJSC Asnova Holding (“Asnova” or the “Sponsor”), which fully owns the company. Asnova was founded in 1992 and is currently owned by a group of 9 Ukrainian businessmen. In addition to Savservice Center, Asnova is the owner of DC, a leading home care and personal care retail chain in Ukraine, as well as a number of other businesses most of which are involved in retail and/or distribution activities.

The estimated cost of the project is approximately $18.5 million. IFC is considering a $6 million A loan and a $2 million C loan to the company.

8.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	8.0
Equity

* These investment figures are indicative

Most of the investments contemplated by the project will be made at two sites: the “Esma” site and the “Kalynivka” site. The “Esma” site, which accommodates the company-owned warehousing and logistics facility, as well as the company’s headquarters, is located at 27, Krasnova Street, Kyiv. The “Kalynivka” site is located in an industrial zone in the vicinity of Kyiv at 5, Industrialna Street, Kalynivka, Kyiv Region.

In addition to operations in Kyiv, the company has subsidiary distribution companies in Bila Tserkva, Dnipropetrovsk, Cherkasy, Chernigiv, Chernivtzi, Khmelnytzky, Lutzk, Lviv, Ivano-Frankivsk, Rivne, Ternopil, Uzhgorod and Zhytomyr.

The project would contribute to the increase in availability of modern distribution, warehousing and logistics services in Ukraine. Access to quality services will help lower overhead costs for both suppliers and retailers of fast-moving consumer goods. This benefit is especially valuable for the fast-moving consumer goods suppliers and retailers in Western Ukraine, which has been the company’s focus area. In addition, the development impact of the Project is expected to include the following benefits:

- the project would help address the issue of shortage quality warehousing space in Kyiv;
- the project will directly create more than 200 new jobs;

IFC Role: By providing long-term debt financing otherwise not available for the company, IFC would enable Savservice Center to proceed with its strategically important expansion while remaining financially sound. In addition, IFC will help the company enhance its financial structure through restructuring part of the existing debt and improving further the corporate environmental, health and safety structure.

The review of this project consisted of appraising technical, environmental and social information submitted by the company and visiting the “Kalynivka” and “Esma” sites. The following potential environment, health and safety and social impacts of the projects were analyzed.

- Environmental management procedures.
- Land acquisition and planning procedures;
- Emissions to air and water;
- Solid and hazardous materials management;
- Occupational health and safety, including fire protection and emergency response;

The company has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the Environmental Review Summary (ERS).
Location of environmental documents In locally affected community
Environmental documentation will be made available at the following location:

Krasnova 27 street in Kiev.