Ukrposhta uses 22.7-mln euro loan from EBRD to buy e-bikes, trucks

MOSCOW. July 12 (Interfax) - The European Bank for Reconstruction and Development (EBRD) has decided to reallocate 22.7 million euros of the 63 million euro loan allocated to Ukrposhta, the Ukrainian national postal service, in November 2020 to purchase over 5,000 e-bikes and about 350 commercial trucks.

The situation has shifted priorities, Ukrainian media quoted the bank's statement on Wednesday as saying.

The EBRD said that these new investments were in line with the project's original objectives of retrofitting the company's logistics infrastructure and operating fleet.

The bank noted that in December 2022, it approved a 4.5 million euro co-investment grant, which was funded from the EBRD Shareholder Special Fund (SSF), to support the purchase of satellite Internet terminals and power generators for mobile postal vans.

Ukrposhta saw its net loss in the first quarter of 2023 cut by 38% year-on-year to UAH 403.82 million, while its revenue increased 24.8% to UAH 2,778,870 billion, compared to the first quarter of 2022.

The EBRD loan envisaged three tranches: the first and third for up to eight years for 23 million euros and 10 million euros, respectively, to finance the completion of the Rural Office project, which involves the purchase of new well equipped vehicles (up to 1,900 vehicles) for mobile post offices in 17 regions (three-in-one devices) and the introduction of a new Front Office system for the digitalization and automation of postal services.

The second tranche for 30 million euros for up to 12 years is intended to finance the second half of the investment project for the development of the logistics network.

As of late March 2023, 29.516 million euros of the 63 million euro loan had been received and 1.917 million euros had been repaid. The interest rate for the loan is EURIBOR+1%.