Debt financing and PRI for the construction of the first float glass plant in Ukraine to capitalize on the import substitution and post-war recovery needs

One of Ukraine’s largest industrial groups is seeking debt financing and political risk insurance from a reputable EPC contractor to construct the first float glass plant in Ukraine with a total capacity of 24 mln m² per year. Out of the project’s total CapEx of EUR 163 mn, the Sponsor could cover half of the project costs while addressing local execution risk by leveraging its vast industrial objects construction expertise.

To secure the raw stock base, the Sponsor should acquire the entity that holds 7.2 mn MT of quartz sand in Vilnohirski city and install EUR 7 mn worth beneficiation plant. After initial treatment, the sand will be transported by rail to the float glass producing facility at Korosten, where the Sponsor operates large industrial park and erected 34 000 m² industrial premise for the plant.

Although providing a war risk relative safety net, the Plant’s location is well logistically tailored to cater to the needs of the vibrant construction sector in Kyiv region (which before the war accounted for 38% of the nation’s total) and Western Ukraine which is currently accounts 60% of total national construction activity due to massive residential and industrial capital relocation from war-torn regions of eastern Ukraine.