Project summary document

Project description
and objectives:

The proposed financing will strengthen Belvedere’s operations in Bulgaria and support it in the process of becoming one of the biggest local players in the wine sector and increasing its export sales. Proceeds will be used mainly for the reconstruction of the existing wineries and for acquisition of vineyards.

Transition impact:

The transition impact from the project will result mainly in increased competition in the overall wine production chain leading to grape quality improvements.

(i) Belvedere will invest in vineyards to be able to provide approximately 30% of its raw material needs.

(ii) The projected production growth implies that, despite the presence of own vineyards, the quantity of grapes purchased from the local economy will continue to grow as the production expands and the company will be contributing to quality improvements among its grape suppliers.

(iii) Establishing of own vineyards, as well as the pre-financing programs, will allow Belvedere to set and maintain higher quality standards for grape production, a problem which has plagued virtually all of the Bulgarian winemakers over the last few years, thus affecting the image of Bulgarian wine in international markets.

The client:

Belvedere Capital Management Ltd. is a Bulgarian holding company established to consolidate the wine activities of Belvedere S.A., France in the country which is 100% owned by Belvedere S.A.

EBRD finance:

The total financing package is for up to € 9 million and would be consisting of:

(i) EUR 7 million long-term secured debt

(ii) up to EUR 2 million equity.

Total project cost:

Up to EUR 30 million.

Environmental impact:

In accordance with the EBRD's Environmental Policy and Procedures the Bank has categorised this project as B/1 requiring an environmental audit of the Company's current facilities and production processes and an environmental analysis of potential impacts associated with the proposed reconstruction of the wineries and the acquisition of vineyards. Based on the recommendations made by the environmental audit, an Environmental Action Plan has been adopted by the Company.

Technical
cooperation:

None.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

Mr Nikolay Dalakov, General Manager

Tel: +359 2 976 9450

EBRD contact:

Mark Edwards, Operation Leader: edwardsm@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com