The provision of a senior secured loan of up to €4.0 million under the Resilience Framework to the Borrower to Tayfun-Plus PE, Ukraine's leading producer of hardwood components for parquet industry
This project was approved in the context of the Bank's response to the Covid-19 pandemic. To avoid delays in the delivery of this project, the Bank granted a deviation from the ordinary timelines for PSD disclosure. the details of which can be found on the website.
The loan will support Tayfun's liquidity and help withstand the Covid-19-caused crisis by preserving its capital expenditure plans, as envisaged by the original project approved by the EBRD in 2019.
ETI score: 60
Competitive. The introduction of higher value added production.
Green. The reduction in wood waste by improvements in the existing technologies and operations.
Tayfun-Plus PE is one of the leading Ukrainian producers of hardwood components for parquet industry, located in Lviv region, Western Ukraine. During 2017-2020 the Bank co-financed the Company's investment projects related to the capacity expansion and modernisation, impovement of the output ratio and minimisation of wood waste.
EBRD Finance Summary
Total Project Cost
The EBRD financing is provided under extraordinary circumstances stemming from the COVID-19 crisis. Specific triggers for the Enhanced Additionality Approach will not apply.
Environmental and Social Summary
Categorised B (2019 ESP) and Low-Medium Risk. Investment to provide additional working capital under Resilience Framework to the producer of hardwood components for parquet industry is associated with site-specific E&S impacts that can be managed via implementation of good E&S management practices. The Borrower is an existing EBRD Client who has been subject to an in-house Environmental and Social Due Diligence (ESDD) for the original Project, where financing was provided for expansion of existing facilities and installation of new equipment. That ESDD included a site visit by an ESD specialist; review of EHSS documentation, E&S management systems and existing operational practices; as well as analysis of the impacts and benefits associated with the Project. It was established that the Company is in compliance with national regulatory requirements, has adequate environmental, safety and social systems in place, and is in possession of all the required authorizations and permits. The Company also has valid FSC certification.
The Client has been implementing the ESAP agreed for the original Project and its progress was assessed for the proposed investment through review of the Annual Environmental and Social Report (AESR). The Client has demonstrated good progress on the implementation of the environmental, health and safety and energy management systems ISO 14001/45001/50001; implementation of the wood supply plan; improvement of the contractor management; fire and explosion preventive safety measures; emission reduction and overall safety culture improvements. There are no new E&S risks associated with the current Project; no Covid-19-related redundancies are envisaged; and the Client developed preventive crisis response measures for a potential Covid-19 2nd wave to avoid personnel dismissal or outflow.
The Client will be required to continue the agreed ESAP implementation and comply with ESP PRs.
Technical Cooperation and Grant Financing
The Company will benefit from the Technical Cooperation component funded from EU4Business program for Ukrainian SMEs. The TC funds will be used as a post-investment support in conjunction with the new financing under the EBRD Covid-19 Solidarity Package. The TC funds will cover part of the outside legal counsel and technical due diligence costs in a total estimated amount of € 47,000.
Company Contact Information
Yosyf Ivanyuk (Official Representative, Of сounsel)
+38 097 513 24 54
Simplex / 6th floor, 46 P. Kulisha Street, Lviv, Ukraine, 79000
PSD last updated
01 Oct 2020
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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).
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