Project description
and objectives:
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The proposed project will enable the Bank to participate in the Sponsor's development plans in the Bank's Countries of Operation over the next four years through the extension of the current Multi-Project Facility Framework between the Sponsor and the Bank. This will consist of a series of direct investments by the Sponsor in the Bank's countries of operations to (a) develop further the Sponsor's leading market position in the malting sector as well as other core businesses in the region and (b) improve supply and quality of raw materials from the primary farming sector.
The first EBRD investment under the renewed MPF will be the provision of revolving seasonal working capital financing in Romania, Ukraine, Russia and Kazakhstan in an aggregate amount of up to € 20 million in the first year The project will enable the Sponsor to expand it grain collection activities from the local farmers.
The second EBRD investment under the renewed MPF will be through an investment of up €11.9m in Slauvta. EBRD will support Soufflet's acquisition and restructuring of Slavuta, a malt house in the north-western part of Ukraine. The project will enable Soufflet to expand its operations to Ukraine and support the local barley farmers in the region.
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Sub-projects:
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- Soufflet ACL 2004 Slavuta
- OOO Soufflet Zerno Rus
- OJSC Soufflet Maltings Kazakhstan
- Soufflet Malt Romania SRL
- Soufflet Slavuta - Ukraine
- Soufflet Ukraine ACL 05
- Soufflet Kazakhstan ACL 2007
- Soufflet Ukraine ACL 2007
- Soufflet Agro Rus ACL 2007
- Soufflet Slavuta ACL 2007
- Soufflet Malt Romania
- Soufflet Agro Ukraine ACL 2008
- Soufflet Malting Czech II
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Transition impact:
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- The transition impact of the extended MPF is expected to derive from strong upstream linkages with the barley growing sector. The Sponsor will be relying more and more heavily in its second phase of development in CEE and FSU countries on local procurement of raw materials to improve cost competitiveness.
- Strong upstream linkages under the Framework will provide a stable market for local farmers: As Soufflet increases its local input sourcing for trading and processing, more farmers could benefit from a long term client relationship, improving market stability for their products, while benefiting from technical assistance in crop growing.
- Stimulating competitive behaviour and market orientation in other sectors of the economy, most importantly in primary agriculture through interactions with suppliers and clients; and
- Have a demonstration effect on both domestic and foreign investors associated with a variety of new ways of financing projects in the agribusiness sector.
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The client:
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Groupe Soufflet is the largest European producer of malt from barley and is the third largest European milling company. The Groupe is one of the largest purchasers of French grain harvests and, after processing, exports its products throughout the EU and to Asia, Africa and Latin America. The client is also the leading malster in Eastern Europe following investments with the Bank in Russia, Poland and the Czech Republic.
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EBRD finance:
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€ 65 million in aggregate, available for individual investments of € 7 million to € 20 million to be analysed as and when proposed by Soufflet. Investments may take the form of unsecured long or short term debt, preferred equity financing, or common equity investments in project companies.
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Total project cost:
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€ 185 million
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Environmental impact:
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During the course of the Bank's first operation with Soufflet, environmental due diligence was conducted on the Sponsor's corporate environmental management system. The aim of due diligence was to assess the Groupe's policy and organisation with respect to the management of environment, health and safety issues throughout all facilities as well as the Groupe's environmental due diligence procedures. In the course of the first operation the Groupe has demonstrated its commitment to environmental issues and its ability to manage the environmental issues associated with its operations.
Environmental issues that may arise on the type of projects considered could relate to such things as: regulatory compliance and permitting requirements, waste-water treatment processes, solid waste management and contingency planning and emergency response. The Groupe will be required, for each project, to follow the Bank's Environmental Procedures for Multi-Project Facilities, with support from independent environmental consultants where necessary, and to demonstrate to the Bank such undertakings in the form of environmental reports. This will ensure, among other things, that projects are being structured in accordance with national and EU standards. Subsequently, each project company will be required to provide regular monitoring reports on environmental, health and safety matters.
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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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Mr. Laurent Bernasse
Finance Director
Groupe Soufflet
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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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