NARZAN

The proposed project will consist of debt and equity financing of JSC Narzan (the Company), a leading Russian mineral water producer located in Kislovodsk, Stavropol region. The Bank's financing will enable the Company to expand its bottling capacity, develop new products and satisfy the working capital needs.

The transition impact of the Project is expected to be good and will derive primarily from corporate governance improvement resulting from the Bank's involvement as shareholder in the Company, including the introduction of IAS accounting, integrated MIS systems, and an independent board director. Additional transition impact will derive from: (i) the demonstration effects of the Bank's investment in a region which has seen relatively little investment; and (ii) forward linkages based on the Company's know-how transfer to distributors across the country.

JSC Narzan is a joint stock company, incorporated in Russia and focused on production, bottling and distribution of mineral water.

Up to US$ 12.25 million financing, which includes a secured senior corporate loan and an equity investment into the Company.

US$ 12.25 million

Screened B/1. An environmental audit and analysis of the operations, including a site visit to the Kislovodsk facility by the Bank's Environmental Specialist, confirmed that there are no significant environmental issues associated with the project and demonstrated the company's commitment to high environmental standards. The environmental due diligence addressed a range of issues including the impact of water abstraction on the regional water balance and the security and supply of the water source and product quality vis-à-vis applicable international standards; and post consumer waste issues. The company is committed to comply with all relevant national and EU environmental, health and safety standards.

None.

Viacheslav Sinadski, Member of the Board of Management.

Tel: +7 095 775 3949
Fax: +7 095 244 7511