Moldova Trans-Oil

Location:

Moldova

Project number:

51227

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

C

Target board date:

18 Sep 2019

Status:

Signed

PSD disclosed:

13 Aug 2019

Translated version of this PSD: Romanian

Project Description

Provision of up to USD 40 million in the form of a participation in a syndicated senior secured revolving credit facility to finance working capital needs of Trans-Oil Group. Working capital financing is associated with the procurement, storage, processing, transportation of agricultural commodities, and export sale.

Project Objectives

Provision of seasonal working capital financing for the Group's activities in Moldova.

Transition Impact

The Project is expected to have a transition impact under the "Competitive" and "Integrated" transition qualities through: (i) the introduction of value added goods such as organic and high oleic sunflower oil to the Group's sales structure which will lead to higher profitability thus enabling the Group to become more competitive. Several local suppliers of grain and oil seeds are expected to obtain organic certification in accordance with international strandards; (ii) the expansion of Trans-Oil's exports to the new foreign markets leading to stronger international integration of the Group.

Client Information

TRANS-OIL INTERNATIONAL SA
 
Trans-Oil Group is a leading Moldovan vertically-integrated agribusiness, engaged in oilseed crushing, grain trading, transhipment and silo services.

EBRD Finance Summary

USD 40,000,000.00

Total Project Cost

USD 150,000,000.00

Environmental and Social Summary

Categorised C (ESP 2014). Issuing a credit facility to the Trans-Oil Group is likely to have minimal or no adverse E&S impacts, and a corporate and specific facility-level ESAP under the previously signed projects is being implemented by the Group. A comprehensive E&S Integrated Management System was developed and implemented at all facilities of the Group and is certified to comply with ISO14001 environmental, OHSAS18001 health and safety, ISO22000 food hygiene standards, and International Sustainability and Carbon Certification System (ISCC). As part of a broad CSR programme the Company supports local communities with focus on vulnerable groups.
 
The E&S Due Diligence consisted of the review of the E&S Questionnaire, comprehensive support materials and internal procedures under the corporate E&S management systems. Additionally, the ESDD findings were informed by the results of the previous project audit by an independent consultant, and annual E&S monitoring reports that confirm satisfactory implementation of the existing ESAP. The Company is performing in line with good industry practice and has strong institutional capacity to comply with the Bank's PRs. Significant resource efficiency measures were implemented by the Group, including installation of hexane recovery units and reuse of output solvent in seed oil refineries, requiring on average 45% less of solvent by volume. With assistance from the Bank's TC funded safety audit, the Group improved its OHS performance over time and actively promotes sustainability, safety and corporate social responsibility among employees, contractors, suppliers and local communities. Trans-Oil Group was nominated for the EBRD Sustainability Awards in 2018. The Bank will continue to monitor the E&S performance via regular reporting on existing ESAP that remain valid for this Project.

Technical Cooperation

To support the preparation of the investment, the Bank initiated the Technical Cooperation assignment "Moldova: Review of grain and oilseeds sector competitivness". The cost of the assigment is partially covered by the EBRD's Shareholder Special Fund.

Company Contact Information

Oleg Lupasco
+373 22 889 300
+373 22 889 301
27 Lev Tolstoi str., MD2001, Chisinau, Moldova

 

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