Project description
and objectives:
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The project consists of a US$ 3 million (€3.1 million) equity investment in
one of the largest Ukrainian cereal breakfast producers, Boryspil Cereal Plant
(BCP), to finance permanent working capital needs and the company’s growth.
The proceeds from the capital increase will enable BCP to:
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expand its operations,
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have access to much-needed working capital, and
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increase its marketing and sales in Ukraine and elsewhere in the Bank’s region
of operations.
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Transition impact:
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The transition impact and "demonstration effect" of the project are expected
to be high, given:
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its support for a private sector company by strengthening market-oriented
behaviour in Ukraine;
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the increase in consumers’ choice, both in quantity and quality of
well-packaged branded products in line with Western standards.
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The client:
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BCP was acquired by Cerealia A.B. in February 2000. Cerealia AB is a
Scandinavian breakfast cereal, flour and bread manufacturer with annual
turnover of US$ 640 million. It is one of the largest Scandinavian food groups
and the market leader in cereals products in the Nordic countries with a
significant presence in the region.
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EBRD finance:
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US$ 3 million portage equity investment with a put option to the sponsor
subject to a carve-out for specified political events.
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Total project cost:
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Environmental impact:
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The project was screened C/1, requiring an environmental audit. This was
carried out by a member of the Bank’s Environmental Appraisal Unit in February
2000. The main findings from the audit were that:
the company complies with the Ukrainian national environmental, health and
safety requirements as a minimum;
certain parameters, such as dust and noise levels or concentration of the
suspended solids and heavy metals in water supplied to the plant for technical
use, appear to exceed EU standards.
An Environmental Action Plan (EAP) formulated on the basis of the results of
the audit, includes appropriate measures to address environmental issues.
Implementation of the EAP will ensure that the company reaches compliance with
the relevant EU standards. According to the audit, the company has not been
subject to fines or penalties for non-compliance with health, safety and
environmental regulations in the past. The company will report annually to the
Bank on environmental matters, such as compliance status and progress with
implementation of the EAP.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Ilir Fani, Operation Leader: fanii@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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