Voli Capital Increase



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

14 Oct 2015



PSD disclosed:

08 Oct 2015

Translated version of this PSD: Montenegran

Project Description

The EBRD is considering an equity investment of up to EUR 10 million by way of subscription to a newly issued convertible redeemable preference stake (the "EBRD Stake") in Voli doo ("the Company"). Voli is the leading retailer in Montenegro, with 53 stores and 28,247 sqm of net selling space.

The EBRD investment proceeds will be applied towards financing the expansion of the Company's store and distribution centre network in Montenegro including for some energy and resource efficiency improvements.

Project Objectives

The operation will enable the Company to strengthen its supply chain for both wholesale and retail operations, through construction of a new distribution centre (DC), and to expand its retail network through opening of two new stores in Montenegro.

Transition Impact

The proposed Project will focus on setting standards of conduct in corporate governance, as well as linkages to local suppliers and wholesale customers.

(i) Demonstration effect of successful restructuring: as result of the investment in the new distribution centre and through the implementation of the value creation plan.

(ii) Setting standards of corporate governance and sustainability.

(iii) Expansion of competitive market interactions in other sectors' backwards and forward linkages: through the development of a large modern distribution centre in Podgorica that will facilitate the development of local and regional supplier networks and help companies to sell their products the local market.

The Client

Voli is the largest retailer in Montenegro and an existing client of the Bank, with FY 2014 sales of EUR 181m and EBITDA of EUR 12.4m. The Company is 100% owned by its founder and CEO, Mr. Dragan Bokan.

EBRD Finance

The EBRD transaction is an equity investment of up to EUR 10 million by way of subscription to a newly issued convertible redeemable preference stake  in the Company.

The EBRD Stake will rank senior to the ordinary capital and shall be convertible into ordinary capital in case of a sale of the Company to a third party.

Project Cost

EUR 12.25 million.

Environmental Impact

Categorised B (2014). Environmental and social due diligence for this equity investment was carried out based on a desk-review of a corporate-level EHSS Questionnaire, a traffic and road safety questionnaire, as well as Annual Environmental and Social Reviews submitted by the Company for the existing investment and covering the calendar years 2013 and 2014. Voli expressed interest in developing their capabilities and improving their performance in a number of areas, including EHSS and road safety management systems as well as worker grievance management. In order to achieve this, Voli will need to increase its human resources with EHSS responsibilities and adequate EHSS training, and call on some outside expertise to develop systems modelled on the ISO 14001, 39001 and OHSAS 18001 standards. Measures to achieve this have been included in the ESAP. Other measures necessary to align Voli with EBRD requirements have also been added in the ESAP, including putting in place processes to manage risks associated with contractor and supply chain management, exploring opportunities for energy and resource efficiencies, and developing a stakeholder grievance mechanism.

Technical Cooperation

The Project might benefit subject to agreement with the Company from energy audit related to identification and assessment of cost-effective energy and resource efficiency opportunities for the retail outlets and for the new distribution centre.

Company Contact

Branko Brankovic

+382 67 624 220

+382 20 445 002



Josipa Broza bb
81000 Podgorica

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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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