Project description
and objectives:
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The project will consist of a loan of up to US$ 17 million from the Bank to OAO Slavutich to finance 2001-2002 investments and restructure the company’s capital structure. The project aims at helping Slavutich, which has now established itself as a strong player over the past few years, develop its operations through quality investments, strong marketing support and group synergies to establish itself as one of the clear leading Ukrainian beer producers.
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Transition impact:
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The project is expected to have a transition impact in helping a major strategic investor in Ukraine promoting international standards of production, corporate governance, financing and reporting to a rapidly growing local operation in a mass consumer market segment. The project will furthermore develop the upstream malting and downstream distribution connections of the Ukrainian brewing sector. It will, in particular, provide continuous support to the underdeveloped Ukrainian malting sector through the required local malt supply of the company. Finally, the project will enhance competition in the Ukrainian beer market.
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The client:
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OAO Slavutich (Slavutich or the "Company") is the third largest Ukrainian beer producer. The company is majority owned by Baltic Beverages Holding AB (BBH or the "Sponsor"), the leading beer producer in Russia and the Baltics.
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EBRD finance:
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US$ 17 million equivalent long-term loan from the Bank to the company. The facility will be used to finance 2001-2002 capital expenditure and restructure the company’s capital structure by lengthening the maturity of the financial debt currently available to Slavutich. The loan will be fully guaranteed by the sponsor.
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Total project cost:
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US$ 56 million (€60.5 million equivalent).
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Environmental impact:
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This project was screened B1, requiring an environmental analysis and baseline audit. The audit and analysis confirmed Slavutich’s compliance with Ukrainian regulations related to environment, health and safety, including at its production site, which was recently upgraded. Issues raised in the audit include a need for a more proactive environmental management system, some improvements in waste management practices and the need to install a waste water treatment facility for storm waters. The reports also confirmed that Slavutich’s corporate practices in respect of environment, health and safety to a large extent satisfy EU requirements. Other than the treatment facility for storm waters, only minor environmental investments will need to be undertaken which have been defined in an Environmental Action Plan (EAP) agreed with the Company. Implementation of the EAP will ensure that Slavutich's operations reach full compliance with both national and EU requirements, including those related to waste water quality. Slavutich will report to the Bank annually on progress made in implementing 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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Lyudmyla Lishchenyuk, Operation Leader: lishchel@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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