RF - Mila



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

09 Jun 2020



PSD disclosed:

06 Aug 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.

The provision of a senior secured loan of up to €8 million to support the Bel Parfum Distribution Group's (the Group) working capital needs and ensure uninterrupted operations in an environment impacted by the COVID-19 outbreak.

Project Objectives

The proposed facility aims to ensure adequate liquidity for the Group during a period where its operations will likely be affected by falling demand, higher costs and increased operational risks. The proceeds will be used for working capital purposes to support liquidity of the Group as well as to facilitate the completion of the ongoing 2020-21 capital expenditure programme, which includes the construction and equipment of a warehouse. This will allow the Group to achieve the targets set in the original equity deal and therefore safeguard the Bank investment and corresponding transition objectives.

Transition Impact

ETI score: 88

The TI of the project under the Resilience Framework is aligned with the original equity transaction (OpID 49139) and is expected to be derived from the Well-governed and Competitive qualities through the implementation of a CGAP and operational restructuring plan to enable the Group to improve its operational performance.

Client Information


Bel Parfum Distribution Group is engaged in retail and wholesale trade of personal care and household goods in the Republic of Belarus. The Group operates a chain of more than 500 specialised stores under the brand Mila.

EBRD Finance Summary

EUR 8,000,000.00

A senior secured loan of up to €8 million to Parfum Trade LLC and Parfum Logistic LLC ('co-Borrowers'). The co-Borrowers are part of the Bel Parfum Distribution Group, an existing equity client of the EBRD.

Total Project Cost

EUR 8,000,000.00

Total Project cost is €8 million.


The EBRD financing is provided in the extraordinary circumstances of the COVID-19 crisis.  Specific triggers for the Enhanced Additionality Approach will not apply.

Additionality sources COVID-19 crisis response: the EBRD financing effectively bridges a liquidity gap due to adverse market conditions caused by the COVID-19 crisis.  

Additionality Description Obtaining working capital financing, in particular unsecured funds, from local lenders at short notice is currently difficult for Belarusian corporates operating in sectors particularly susceptible to the impact of the COVID-19 pandemic, such as the Group.

Environmental and Social Summary

Categorised B (ESP 2019), Low Medium risk based on personal care and household goods distribution and retail sector and Company's capacity to carry out its operations in line with the EBRD PRS. The ESDD for this project was carried out in line with COVID 19 approach and was based on ESDD carried out in 2018 for the previous transaction (DTM 49139) and review of provided AESR for 2019 with ESAP compliance status.

The ESDD has confirmed that the Company has established ESH capacities at satisfactory level and manages its operations in stores, warehouses and distribution centres in line with established internal EHS procedures, implemented ISO 9001 quality management systems and in compliance with national laws. The Company demonstrates sufficient progress in implementing the ESAP agreed in 2019, with only a few items delayed due to the COVID19 disruptions. There were adequate traffic safety measures implemented specific to the warehouses operations, and training of the drivers on road safety. There are a number of resource efficiency measures in place, namely use of replaceable delivery containers to the stores and recycling of packaging materials. The ESDD confirmed that the existing ESAP is adequate and does not need to be updated for this RF transaction. The Bank will monitor the Project and the ESAP implementation through review of Annual E&S Reports and site visits as required.

Technical Cooperation and Grant Financing


Company Contact Information

Natalia Chaiko
+ 375 29 324 80 42

PSD last updated

02 Oct 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

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Tel: +44 20 7338 6794
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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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