DANFOSS DEBT FACILITY FOR INDUSTRIAL ENERGY PROJECTS

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 27003

Status Complete

Location

Regional

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 27003

Status Complete

Location

Regional

Business Sector

Manufacturing and Services

Notice Type

Private

Environmental Category

Approval Date

03 Sep 2002

Disclosure date

08 May 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 term debt facility to be provided to Danfoss A/S to finance 80 per cent of individual energy efficiency projects in certain eastern European breweries. Target breweries are owned by major western investors. The project objective is to combine the technical skill of a leading engineering and environmental components company with EBRD financing to enable breweries in the region to improve their operating efficiency. Proceeds will be used to finance up to 80 per cent of each investment, which is to be entirely repaid out of energy savings. Financed investments will have a payback period of four years or less. Implementation will be carried out by Danfoss Solutions A/S on a performance contract basis.

Transition Impact

This financing will enable breweries across the region to use energy, including water, steam and electricity, more efficiently, helping to instil western operating standards at a time when energy costs are rising. The cash flow freed up due to the reduction in energy bills will further benefit the breweries.

The Client

The Danfoss Group is Denmark's largest industrial company with an annual sales turnover in 2001 of €1,935 million and about 16,500 employees. The Danfoss Group is a world leader in research, development and production of mechanical and electronic components for three broad business groups: refrigeration and air conditioning, heating and water, and motion control.

EBRD Finance

The proposed loan is a seven-year term debt facility in the amount of €10 million.

Project Cost

Total project cost will be at least €12.5 million as the loan will finance 80 per cent of each energy efficiency investment.

Environmental Impact

The project will finance investments that will reduce energy consumption and related adverse environmental impacts in the facilities of Danfoss clients. The Bank will review the result of Danfoss' environmental due diligence prior to give its no objection to any investment.

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:
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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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