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EBRD and IFC in convertible loan for Belarus Greenfield project

Two IFI’s raise USD 8.5 million to build detergent plant in central Belarus

Author(s):Richard Wallis
Date:20 December 2010

The EBRD and IFC, a member of the World Bank group, have agreed to make a convertible loan totalling USD 8.5 million to finance the construction of a greenfield detergent plant in Osipovichi, a town of 50,000 some 130 km from the Belarus capital Minsk.

The EBRD loan of USD 3.5 million and the IFC one of USD 5 million are both convertible on identical terms into minority stakes in the borrower, Lebortovo Capital Partners (LCP), a Cyprus-registered company.

LCP owns 100 percent of Belarus Unitary Company Svoboda, which was set up specifically for the construction and operation of this detergent plant.

The low use of detergents in Belarus (only 4.2 kg per capita in 2008) means the market has significant growth potential. In addition, building a local plant in a country where over 90 percent of detergents are imported –mainly from Russia and Poland -- will give Svoboda cost advantages, providing significant scope for import substitution.

Last updated 20 December 2010

Richard Wallis
Moscow - Tel: +7495 787 1111

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