Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

02 Sep 2015



PSD disclosed:

03 Aug 2015

Translated version of this PSD: Slovenian

Project Description

The EBRD is providing the provision of a long-term loan of up to EUR 4.5 million to the Slovenian tissue producer Paloma d.d. (the “Company” or “Paloma”). The loan will be used to finance the Company’s energy and resource efficiency investments as well as working capital needs.

EBRD’s investment will support a balance sheet restructuring, improve resource efficiency at the Company and facilitate privatisation of Paloma.

Transition Impact

The transition impact of the proposed Project will be derived from

(i) demonstration of successful restructuring through supporting a balance sheet restructuring as well as encouraging completion of an equity capital increase;

(ii) setting standards of corporate governance and business conduct through most imminent investments in resource efficiency; and

(iii) private ownership that is facilitated by allowing a financial restructuring of the Company that should support the privations process of the Company.

The Client

Paloma is a Slovenian integrated hygiene and tissue paper producer with 2014 revenue of EUR 87 million and EBITDA of EUR 6.7 million. Paloma has four paper machines with total paper production capacity of 72,000 tons and 28 converting lines with capacity of 93,000 tons.

EBRD Finance

A senior loan of up to EUR 4.5 million.

Project Cost

EUR 4.5 million.

Environmental and social categorisation, impact, and mitigation

Categorised B under the 2014 Environmental and Social Policy. The production of tissue paper and tissue converting is associated with limited adverse environmental and social impacts, which can be effectively mitigated with modern techniques. The proposed investments will improve energy and resource efficiency of selected parts of the production facility and have no significant environmental or social impact. The ESAP has been agreed in principle with the Company.  An Environmental and Social Analysis of the planned expansion programme and a corporate review of the Company’s management systems, existing facilities and operations, was undertaken by the Bank's environmental and social specialists based on a site visit and a review of reports prepared by independent consultants and information provided by the Company. The plant is located within a historic industrial site, however, the past use of the site did not involve activities that would raise significant concerns relating to soil or groundwater contamination or other potential environmental liabilities. No harmful chemicals are used at the mill, and the raw materials consist of virgin totally or elementary chlorine free pulp made of certified wood raw material and recycled paper only. The Company has implemented a substantial modernisation and improvement programme over the past 15 years to improve its operational efficiency and environmental performance. The Company's integrated environmental permit is valid until 2019. The investments financed by the Loan are aimed at further improving the tissue paper mill’s energy efficiency and environmental performance. The Project will also allow for increasing the use of recycled paper as raw material and improve resource efficiency of the Company and result in raw material cost savings. The tissue production will not be increased as a result of the Project. An Environmental and Social Action Plan (ESAP) has been developed to guide the Company to further improvements of its environmental and social performance so as to ensure the Company maintains its compliance with EU environmental standards based on the use of BAT for tissue manufacturing and recycled paper processing.

Technical Cooperation


Company Contact

Tanja Koban, Vodja projektov/Project Manager

Paloma d.d.
Sladki vrh 1
SI-2214 Sladki Vrh, Slovenija

T: +386 (0)2 645 71 03

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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