DFF - Lantmannen Ukraine



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

14 Jan 2020



PSD disclosed:

23 Jan 2020

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Provision of a senior long-term loan ("loan") of EUR 3m to PrJSC Lantmannen Axa (the "borrower", "company"), a breakfast cereal producer in Ukraine. 

Project Objectives

The loan is a stand-by working capital facility, which will be used in cases of liquidity needs for working capital purposes (the "project").

Transition Impact

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

Client Information


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

EUR 3,000,000.00

A senior long-term loan of EUR 3m for working capital purposes.

Total Project Cost

EUR 3,000,000.00


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

Igor Chervak
+(380) 44 451 63 65
Street Privokzalna, Building 3 08304 Kyiv Ukraine

Implementation summary

PSD last updated

23 Jan 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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