Nadezhda LPG

completed

Nadezhda is a private Enterprise Company that operates as a retailer and wholesaler for the distribution of petroleum products focusing primarily on LPG. The company is the second largest LPG distributor in the Ukraine and has a strategic vision of building on its strength in LPG and expanding further both in LPG and traditional fuels e.g., gasoline and diesel, distribution. Nadezhda requested IFC to provide additional support to expand the number of fuel filling stations from 80 to nearly 97 through the acquisition or construction of 17 fuel stations and to replace short term working capital loans with long term financing (the “Project’). Most of the new stations will be LPG filling stations as planned at this stage. The proposed Project is synergistic with the company’s existing infrastructure as the company owns an extensive network of depots and fuel filling stations in the Poltava, Kharkov, Sumy and Donetsk regions of the Ukraine. Currently the company operates 80 filling stations which consists of 50 LPG filling stations, 30 multi-fuel stations, 5 fuel storage terminals (4 of which are owned and one small terminal which is leased on an annual basis), 40 LPG distribution trucks (the largest fleet in Ukraine) and 30 petroleum product distribution trucks. There is a train terminal within each fuel storage terminal for fuel transportation.