Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

08 Oct 2002



PSD disclosed:

02 Sep 2002

Project Description

Proposed senior loan to Kalina to co-finance the acquisition of an attractive smaller company in the cosmetics industry and to finance investments into new production lines and working capital. The EBRD is a 17.84 per cent shareholder in Kalina via an investment through Eagle Group Regional Venture Funds.
The EBRD will provide financing for the acquisitions of one or two smaller companies in the sector to enable the borrower to become the largest producer of personal care and household products in Russia and CIS. In addition, the investments will be directed in new production lines and upgrades of existing equipment to improve the quality of existing products and to increase the share of high margin products in the overall product portfolio. Part of the investment will be used to finance growing working capital requirements.

Transition Impact

The project will facilitate the growth of the leading producer in the Russian fast moving consumer goods sector. The company has demonstrated sound financial performance, high standards of business practice and quality management. The capital expenditure programme will improve product quality and production efficiency allowing the company to compete with the best international and local producers. The acquisition of smaller companies will contribute to market efficiency and promote competition to importers.

The Client

OAO Concern Kalina is the leading producer of branded cosmetics, toiletries and household products in Russia and the CIS. It holds 30% of Russian skin care products market, toothpaste – 19% and 5% share in perfumes. The company has a majority shareholding concentrated in the hands of senior management. The management is progressive and market oriented.

EBRD Finance

EBRD will provide US$ 20 million (EUR 20.2 million) senior loan.

Project Cost

US$ 20 million (EUR 20.2 million).

Environmental Impact

This operation has been screened B/1. An Environmental Action Plan was developed prior to the Eagle Group Regional Venture Funds investment and an environmental audit was conducted by western consultants. An Environmental Team member visited the site in April 2002 and was satisfied with the progress of implementation of the Environmental Action Plan.

Technical Cooperation


Company Contact


Business opportunities

For business opportunities or procurement, contact the client company.

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