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.
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.
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.
PARFUM TRADE LLC
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
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
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
+ 375 29 324 80 42
PSD last updated
02 Oct 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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More information on the EBRD’s practices in this regard is set out in the ESP.
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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.
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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 email@example.com to get guidance and more information on IPAM and how to submit a request.