Translated version of this PSD: Russian
The EBRD is considering a long-term loan facility of up to USD 49.2 million in Kazakhstan Tenge (KZT) equivalent to RG Brands LLP (the “Company” or “RG Brands”), one of the leading branded food and beverage producers in Kazakhstan, based in Almaty. The loan facility will finance the Company’s working capital needs, capital investments as well as refinancing of existing debt.
The Project will enhance the impact of the existing working capital loan provided to the Company in 2013 and facilitate market expansion through backward linkages to local dairy farmers and fruit concentrate suppliers. In addition, the Project will be setting standards for business conduct via introducing improvements to the production process that would reduce amount of packaging materials used and thus indirectly reduce CO2 emission.
RG Brands JSC is one of the leading food and beverage producers in Kazakhstan with a wide and diversified product portfolio of juice and nectars, water, carbonated drinks, iced tea, UHT milk, packaged tea and snacks.
Up to USD 49.2 million loan in KZT equivalent.
USD 49.2 million in KZT equivalent
Environmental and social categorisation, impact, and mitigation
Categorised B. Through earlier projects with the Company, the Bank has identified the key E&S issues associated with the operations of RG Brands and has agreed an Environmental and Social Action Plan (ESAP) to address those. The Bank’s previous environmental and social due diligence (ESDD) was carried out by ESD and demonstrated that the Company operates in line with local Kazakh environmental, labour and health and safety regulations. Further strengthening of the Company’s organisational structure to fully understand and meet EBRD Performance Requirements and dedication of appropriate financial resources for environmental and social issues was necessary. Delays in the implementation of previous requirements and non-compliances identified during monitoring visits was evidence of this lack of robust management of E&S issues. Reporting to date has demonstrated that the Company is now dedicating more resource and effort into E&S issues and that operations are being conducted in accordance with the agreed ESAP. This new Project with the Company will not result in additional environmental and social impacts beyond those already reviewed and understood by the Bank. No further ESDD was required for the new project. The Company will be required to continue to provide reporting to EBRD on the implementation of the revised ESAP and on any other environmental and social issues affecting the Company during the reporting period.
Agybayev Askhat CFO
Ungarbayev Alibek Financial Director
Raiymbek Avenue, 212b
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Text of the PIP