Agri Europe (f.MK Equity)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 43774

Status Complete

Location

Serbia

Business Sector

Food and Agribusiness

Notice Type

Private

Project timeline

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

Project ID 43774

Status Complete

Location

Serbia

Business Sector

Food and Agribusiness

Notice Type

Private

Environmental Category

Approval Date

16 Apr 2013

Disclosure date

22 Feb 2013

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."

Translated version of this PSD: Serbian

Project Description

EBRD is considering an equity investment in the amount of up to €50 million in Agri Europe (the “company”), a vertically integrated agribusiness company with its core business in primary agricultural production, agricultural commodity trading, sugar production and trade.

The proposed equity would enable the further consolidation of Agri Europe’s agribusiness operations over the medium term through investments in operations to achieve better operational productivity, and provide working capital financing.

Transition Impact

Key sources of transition impact derive from:

i) setting standards of corporate governance – the Bank’s equity investment will help to streamline the group structure and improve corporate governance standards ahead of an intended IPO;

ii) market expansion – the construction of silos with third party access in Serbia will address one of the key infrastructure bottlenecks in the country;

iii) demonstration of new financing methods – opening up to outside financial investors may have a key signal effect to other private companies in the region. This also applies to the IPO, which would demonstrate the feasibility of such a step to other similarly structured private companies.

The Client

The company consolidates: MK Group (Serbian producer and trader of agricultural commodities), Carnex (leading Serbian meat producer), Sunoko (leading Serbian sugar producer and exporter) and AgroInvest (Ukrainian subsidiary engaged in primary agricultural production). The company’s grain collection and trading activities are supported by its strong agri-infrastructure consisting of substantial storage capacity and transport fleet.

EBRD Finance

Equity investment in the amount up to €50 million.

Project Cost

Up to €50 million

Environmental Impact

The project was categorised B following the due diligence undertaken by a staff member from EBRD’s Environment and Sustainability Department as well as subsequent meetings with key management to review the Company’s environmental and health and safety management systems. Based on the due diligence an Environmental and Social Action Plan (ESAP) was developed to ensure the company's compliance with the Banks Performance Requirements for environment, health and safety and labour. The company will provide the Bank with regular reporting on the implementation of the ESAP and EBRD staff will monitor Environmental and Social performance for the lifetime of the project.

Technical Cooperation

None

Company Contact

Vladimir Gavric, CFO of MK Group
Tel: + 381 11 35 39 503
Email: vladimir.gavric@mkgroup.rs

Transition impact

ETI Score:60

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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