DUFERCO - VIZ STAHL 2

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 18447

Status Complete

Location

Russia

Business Sector

Manufacturing and Services

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 18447

Status Complete

Location

Russia

Business Sector

Manufacturing and Services

Notice Type

Private

Environmental Category

Approval Date

11 Jun 2002

Disclosure date

05 Apr 2002

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Proposed portage equity to co-finance the buyout of minority shareholders in VIZ-Stahl by its majority shareholder, Duferco, an international steel group and the only foreign investor in the Russian metallurgical sector. The EBRD is a 7.34 per cent shareholder in VIZ-Stahl via its previous investment in 2000. The EBRD will support a committed foreign investor to buy-out minority shareholders in VIZ-Stahl who have expressed their desire to sell. Co-financing of the buy-out by Duferco would facilitate full commercial development of VIZ-Stahl, including the provision of adequate resources for additional capital expenditure and working capital.

Transition Impact

The transition impact potential will largely derive from supporting/broadening the transition impact of the previous project (i.e. demonstrating successful restructuring and setting standards in corporate governance to the local industry).

The Bank will further support a foreign shareholder committed to strengthening VIZ-Stahl's organisational and financial transparency and improving the corporate governance standards. In addition, it enables Duferco to commit its resources to the modernisation programme rather than for buying-out the minority shareholders.

The Client

The investee company is one of only 15 producers world-wide of grain oriented steel used for transformers in power generation and distribution. The company is controlled and managed by Duferco, a major steel trader as well as an important European producer with a clear strategic view on the steel sector and proven ability in acquiring and turning around steel plants.

EBRD Finance

The EBRD will provide US$ 14 million ( 15.6 million) in portage equity with a put option to Duferco.

Project Cost

US$ 21 million ( 23.3 million).

Environmental Impact

This operation has been screened C/1. This is a follow-up project. As part of the Bank’s original investment into VIZ-Stahl, an environmental audit was conducted on the Company and an Environmental Action Plan was developed and is being implemented. According to the environmental reports, which the Company provides annually to the Bank, VIZ-Stahl’s operations are in line with environmental standards of the European Union. An Environment team member will visit the site prior to the Board to ensure the progress of implementation of the Environmental Action Plan.

Technical Cooperation

None.

Company Contact

Transition impact

ETI Score:75

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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