Sodrugestvo Ukraine and Serbia

Location:

Regional

Project number:

50698

Business sector:

Agribusiness

Notice type:

Private

Approval date:

22 May 2019

Status:

Disbursing

PSD disclosed:

08 Jul 2019

Translated version of this PSD: Serbian | Ukrainian

Project Description

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.

Project Objectives

The loan will be utilized to finance working capital needs of the Group for the origination of commodities from Serbia and Ukraine.

Transition Impact

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.

Client Information

INTERGRAIN SA

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

USD 10,000,000.00

Up to USD 10,000,000

Total Project Cost

USD 10,000,000.00
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.

Technical Cooperation

None.

Company Contact Information

Mr. Artem Pozdnyakov, Treasury & Corporate Finance Group Head
a.pozdnyakov@sodru.com
www.sodrugestvo.com
Sodrugestvo Group S.A. 29 Avenue de la Porte-Neuve L-2227 Luxemburg

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.

Share this page: