CMS advises EBRD on financing for Kokhavynska paper factory in Ukraine

International law firm CMS has acted as English legal counsel to the European Bank for Reconstruction and Development (EBRD) in a EUR 13.8m loan to the Kokhavynska Paper Factory (KPF), one of the largest producers of recycled paper and tissue. 

Based in western Ukraine, KPF intends to use the financing to extend its product range, increase its production capacity, and improve its operating efficiency. This will be achieved by investing in new equipment, which will allow KPF to enter the pulp-based-tissue market segment. The new production facility will have a full-cycle, in-house manufacturing process.

In addition, more than EUR 1m will be allocated to the modernisation of a wastewater filtering facility as well as to energy efficiency and climate adaptation measures. These improvements will help to reduce water usage and cut CO2 emissions by 2,400 tonnes a year.

The energy efficiency improvements will be supported with an incentive grant of USD 131,433 provided by the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme, which is designed to transfer technology in the areas of climate change mitigation and adaptation.

Elitsa Ivanova said: “EBRD is the largest international financial investor in Ukraine, and we are delighted to advise them on this financing. With more than 600 lawyers across 17 offices in Central and Eastern Europe, CMS is well-placed to advise clients in Ukraine and across CEE on both local and multi-jurisdictional matters.”

The CMS team included Elitsa Ivanova (Head of Finance at CMS Sofia), Ihor Olekhov (Head of Banking & Finance at CMS Kyiv), Orest Matviychuk (senior associate) and Katerina Hristova (associate).