Project description
and objectives:
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The Bank’s financing will consist of up to EUR 45 million in the form of a
senior loan in three tranches:
a) up to EUR 30 million for seasonal harvest needs, in particular the
procurement of soybean, sunflower and rapeseeds.
b) up to EUR 10 million for permanent working capital needs.
c) up to EUR 5 million for investments in the area of energy efficiency.
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Transition impact:
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The transition impact is derived from increased backward linkages with the
farmers as a result of increase quantities of the agricultural commodities to
be purchased at the harvest as well as from improved yields of sunflower seeds
and soybeans per hectare as a result of the companies’ direct work with
farmers. The Bank’s financing, secured by agricultural commodities, supports
the government initiative to introduce warehouse receipts legislation in
Serbia.
Through success of the Project, the Company will further strengthen its
corporate governance standards and be in a position to increase financing
levels and technical know-how it provides to farmers and cooperatives.
Finally, a component of the Project will be related to energy cost savings
measures as the crushing industry is capital intensive.
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The client:
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Victoria Oil (previously named Mladost Sid) and Sojaprotein, joint-stock
companies incorporated in Serbia and 100% and 44.7% respectively owned by the
Sponsor Victoria Group.
The Sponsor is the biggest processor of soybeans in the region and with
combined crushing capacity of 500,000 thousand sunseeds/per annum.
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EBRD finance:
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EUR 45 million loan consisting from three tranches.
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Total project cost:
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EUR 82.55 million.
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Environmental impact:
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The purchase of sunflower seeds and soybeans is not typically associated with
environmental risk. The processing of these seeds may involve some
environmental issues. To better understand these risks a member of ESD visited
Mladost Sid in May 2006 to conduct a walkthrough review of the facility and to
discuss EHS issues with the company. The company confirmed its compliance
with environment, health, safety and labour requirements and demonstrated that
is has a number of procedures and practices in place to deal with the key
issues associated with production. The company has a number of planned
actions with regard to environment and will be asked to formalise these in a
time-bound environmental action plan to be agreed with the Bank. This will
form part of the legal agreement with the company and be monitored on an
annual basis. However, if any part of the EBRD's loan is to be committed to
Sojaprotein A.D. under this project, an adequate level of environmental due
diligence will need to be performed prior to disbursement.
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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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Branislava Pavlovic, General Director, Sojaprotein
Tel: + 381 21 811 620
E-mail: brana@soyaprotein.com
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EBRD contact:
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Vedrana Jelusic, Operation Leader: jelusicv@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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