Provision of a USD 10 million loan to Intergrain S.A. to finance working capital needs of Sodrugestvo Group's subsidiaries in Serbia and Ukraine.
The loan will be utilized to finance working capital needs of the Group for the origination of commodities from Serbia and Ukraine.
The transition impact of this project, jointly with the project for financing of capex and working capital needs of Sodrugestvo Group's subsidiaries in Turkey, stems from supporting the expansion of the Sodrugestvo Group's footprint and its integration into other markets in the EBRD region by supporting an acquisition in Turkey and expanding its suppliers' base in Ukraine and Serbia. The project will also support improved competitiveness stemming from improved business standards, efficiency gains and greater profitability.
Sodrugestvo Group S.A., headquartered in Luxemburg, ranks amongst the top-20 processors of soybeans in the world with activities in Turkey and the wider region including CIS, MENA, Latin America, and Europe.
EBRD Finance Summary
Up to USD 10,000,000
Total Project Cost
Up to USD 10,000,000
Environmental and Social Summary
Categorised B (ESP 2014). The purchase and processing of soybeans is associated with a number of environmental and social issues which are well understood and readily addressed through appropriate mitigation measures. Environmental and social (E&S) due diligence of this project included completion of a detailed E&S questionnaire by the Group companies and a site visit to production facilities by a member of the Bank's Environment and Sustainability Department. The facilities are located within an industrial zone of the city and are surrounded by other industrial entities.
The Group has adequate capacity in place in terms of staffing and has demonstrated a strong commitment to addressing the key environmental and social impacts associated with its production. The Group has recently established its Quality Department in Turkey and has adopted a number of objectives to enhance its quality, food safety, environmental and health and safety management. This will be done by sequentially achieving certifications to ISO9001 on quality management, ISO22000 and GMP PLUS certifications on food safety, the Round Table on Responsible Soy, ISO 14001 on environmental management and OHSAS 18001 on health and safety.
The Group has undertaken a detailed review of its manufacturing facilities in Turkey and has developed a comprehensive plan to address a number of areas within the production process thus bringing production, environmental and health and safety benefits. The facilities are generally quite old and there are many areas where the Group's plans to upgrade and replace the equipment and facilities. These include improvement of environmental control procedures, implementation of improved labour protection through enhanced training, facilities and documentation, installation of new, and repair of older, equipment and upgrade of buildings.
This improvement plan and other commitments to put in place management systems have been formalised with the Group in a time-bound and costed Environmental and Social Action Plan (the ESAP) which has been agreed with the Group. The Group will be required to provide annual reporting on both the ESAP and the other E&S matters to the Bank.
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