Translated version of this PSD: Russian
The EBRD is considering a long-term loan of up to USD 60 million in Kazakh Tenge (KZT) equivalent to Savola Foods CIS LLP (the “Company” or “Savola”), one of the leading branded edible oil producers in Kazakhstan, based in Aktobe. The loan will finance the Company’s capital investments aimed at expansion of production and storage capacity, certain logistics and energy efficiency improvements and working capital needs (the “Project”).
The Project’s transition impact is expected to derive from setting standards for corporate governance and business conduct, market expansion and backward linkages with local farmers. With the EBRD’s support, the Company will improve its corporate governance standards, environmental and resource efficiency.
Savola Foods CIS LLP, a limited liability partnership organised and existing in the Republic of Kazakhstan, being a subsidiary of Yug Rusi Group, the leading Russian producer of edible oil (the “Group”).
Up to USD 60 million loan in KZT equivalent for the account of EBRD.
USD 83 million in KZT equivalent.
Environmental and social categorisation, impact, and mitigation
Categorised B in accordance with ESP 2014. The independent due diligence, consisting of an environmental and social assessment of the proposed investment as well as current operations (inclusive of a site visit) (ESDD) is currently being finalised. The ESDD identified that the Project is likely to bring a number of improvements related to the automation of operations and reduced use of solvents, which will improve the safety of operations and also quality of the products. The investment will also enable using seed hulls for production of biomass pellets to be used by the plant’s boilers for production of energy. The Company has a number of elements of the environmental, health and safety management systems; and it is in the Company’s long-term plan to gradually implement the ISO 14001 and OHSAS 118001 management systems at all plants of the Group. A number of improvements to the current facilities and operations are required and include soil contamination survey; wastewater and storm water management; waste and pest management, labour relations and assessment of risks to the community due to the residential properties within the boundaries of the sanitary-protection zone. Required measures to achieve a full compliance with the EBRD environmental and social requirements have been included in the draft ESAP, which will need to be finalised and agreed prior to the Final Review of the Project.
The energy and resource efficiency audit was conducted under the EBRD’s Energy and Resource Efficiency Programme for the Corporate Sector funded by the EBRD Shareholders Special Fund. The audit was focused on reviewing the Company’s current operations and investment plan, performing a resource efficiency benchmarking to its peers and international best practices and on the identification of incremental energy and resource efficiency investments.
Mrs. Oxana Guseva, Deputy General Director for Financial Affairs of LLC “MEZ Yug Rusi”
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Text of the PIP