Translated version of this PSD: Croatian
The EBRD is providing a EUR 73.4 million loan (of which EUR 43.4m has been syndicated) to Podravka d.d. (the “company”), one of the leading food producers in Croatia with a strong international presence.
Through this project, the Bank will support the company’s medium-term development, which is expected to contribute to the company’s competitiveness in the region and thereby offer better quality and service to consumers. In addition, the project undertakes to increase the company’s standards in sustainable supply chain management.
The proceeds of the loan will be used for balance sheet restructuring to enable growth through investments in new product lines and markets.
Through the proposed loan, the Bank will:
- support the successful completion of Podravka’s restructuring supported by private pension funds as a necessary step for further growth,
- support the company’s geographical expansion and reinforcement of its position in the Western Balkan region as well as in the growing Polish and Russian markets, and
- improve corporate governance through the introduction of sustainability reporting and supply chain management.
Podravka d.d. is a leading food and beverages and pharmaceuticals group based in Croatia and also has significant presence in markets in Central and Eastern Europe. Podravka’s “Vegeta” brand is an internationally recognised food seasoning that is sold in 40 countries.
€73.4 million loan, of which €43.3m has been syndicated to a number of commercial banks.
Categorised B. Podravka is an existing client of the Bank and limited due diligence was carried out in the context of the existing LEF loan provided for selected energy efficiency investments in 2013. In the context of this currently proposed project with the company, environmental and social due diligence on Podravka was completed by independent consultants and a report was submitted to the Bank.
The report does not reveal any issues of significant concern. The company has identified the key environmental and social issues associated with its activities and has appropriate staffing, policies and procedures in place to manage these. It should be noted that the company’s HR department has been awarded as one of the best among Croatian companies, and the company has been praised for its progressive approach to HR management. In terms of waste water treatment, the consultants confirmed that there is a fully functioning system providing pre-treatment of waters from Danica, Belupo, Lino and Vegeta prior to discharge into the municipal waste water systems.
Some recommendations were made to further improve management of environmental and social issues, and these were formalised in an environmental and social action plan (ESAP). Actions in the ESAP include development of management systems in full accordance with ISO 14001 and OHSAS 18001, development of environmental and social Key Performance Indicators, preparation of a Sustainability Report that is compliant with the Global Reporting Initiative, and integration of environmental, health and safety requirements into the agreement with sub-contractors. Podravka 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.
The Bank will utilise technical cooperation provided by the EBRD Shareholder Special Fund through the SSF ODA Energy Audit Framework and/or SSF EU Energy Audit Framework to undertake a regional product risk assessment study, in which Podravka will participate.
Treasury Department Director
Ante Starcevica 32
48 000 Koprivnica
Tel: +385 48 651 920
Fax: +385 48 622 744
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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