Provision of a senior long-term loan ("loan") of EUR 3m to PrJSC Lantmannen Axa (the "borrower", "company"), a breakfast cereal producer in Ukraine.
The loan is a stand-by working capital facility, which will be used in cases of liquidity needs for working capital purposes (the "project").
Competitive (Primary): The project will support improvements and expansion of production lines and higher value-added products, which is expected to lead to improvement in profitability and efficiency.
Green (Secondary): Out of the total (EUR 3m) investment plan of the borrower, EUR 1.09m is planned to be used for modernisation of the production lines and installation of automation and control systems, which is expected to lead to energy efficiency savings. The GET share of the project is 34%.
TOMS Score: 63
LANTMANNEN AXA PJSC
PrJSC Lantmannen Axa is a breakfast cereal producer in Ukraine. The Borrower is a 100% subsidiary of Lantmannen ek for ("Lantmannen", the "sponsor", or the "guarantor"), the largest agribusiness cooperative in Sweden and owned by 25,000 Swedish farmers.
EBRD Finance Summary
A senior long-term loan of EUR 3m for working capital purposes.
Total Project Cost
Financing structure: The proposed loan is a five year working capital facility, whereas similar financing locally is only available on a short term basis. Risk Mitigation: The Bank's financing will provide comfort and encourage further investments by the company.
Environmental and Social Summary
Categorised B (ESP 2014). Environmental and social due diligence for this project was undertaken through completion of the standard E&S Due Diligence Questionnaire by the Company and follow up Q&A with various members of the company's management team. Given the relatively small size of the project and the proposed use of proceeds, it is not anticipated that this project will be associated with any unaddressed E&S impacts and no mitigating E&S actions will be required of the Company. The project is consistent with the GET approach and the GET share is 34%. PrJSC Lantmannen Axa has a wide range of policies in place covering key E&S issues including a Company Code of Conduct, a Supplier Code of Conduct, an anti-corruption policy, and adherence to a LEAD Code. The Company has developed a bespoke auditing programme through which different entities within the Group are assessed for compliance with the Company's various requirements which are aligned with the scope of the Bank's Performance Requirements.
Technical Cooperation and Grant Financing
The Project will have a Technical Cooperation (TC) component provided by the Japan-EBRD Cooperation Fund under the "Project Preparation Support Programme for Agribusiness Projects in Ukraine". The TC funds will partially cover the legal due diligence costs.
Company Contact Information
+(380) 44 451 63 65
Street Privokzalna, Building 3 08304 Kyiv Ukraine
PSD last updated
23 Jan 2020
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