RF - Project Red II Covid-19 response

Location:

Slovenia

Project number:

51980

Business sector:

Natural resources

Notice type:

Private

Environmental category:

B

Approval date:

28 Apr 2020

Status:

Approved

PSD disclosed:

24 Jun 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Provision of short-term liquidity line in the amount of EUR 25 million that will allow Petrol d.d. Ljubljana (the "Company", "Petrol") to actively manage working capital needs across business lines in light of increased sales volatility caused by the Covid-19 outbreak.

Project Objectives

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.

Transition Impact

ETI score: 60

Main goal of this transaction is to preserve the transition impact of the portfolio operation (OpID 49369; DFF - Petrol DD Bond (f. DFF Project Red)) by providing the necessary working capital financing to address potential liquidity constraints in light of the pandemic.

Client Information

PETROL DD

Petrol is the leading Slovenian energy company with activities focused on sale and distribution of oil derivatives; generation, sale and distribution of electricity and heat; energy consumption optimization projects; comprehensive energy supply projects, and environmental activities.

The company is listed on Ljubljana Stock Exchange with a market capitalisation of EUR 658m as of June 22nd. The Slovenian government owns 31.8% of the company's shares through several vehicles; the other major shareholders include Ceskoslovenska Obchodni Bank i fiduciary account, Vizija Holdings (6.5%) and OTP Banka i fiduciary account; the remaining shareholders are numerous individuals and institutional investors.

Petrol is rated BBB- (stable outlook) by S&P as of October 2019.  

EBRD Finance Summary

EUR 25,000,000.00

Up to EUR 25m senior loan with up to 2-year tenor to provide liquidity support needed to mitigate the impacts of Covid-19 on Petrol's operations.

Total Project Cost

EUR 25,000,000.00

Additionality

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: EBRD financing effectively bridges a liquidity gap due to adverse market conditions, e.g. the Covid-19 crisis.

Environmental and Social Summary

Category B (2019).  The risks associated with a senior loan to an existing client under the Resilience Framework of the COVID 19 Response can be identified and managed through the application of standard management and mitigation measures.  This project is considered Low-medium risk due to the proven capabilities of the client to address environmental and social issues through the existing project. Given this risk rating and the need for urgent response under this framework, the appraisal of this project (which is ongoing) is based on information available in the existing public reports, augmented through completion of the standard corporate questionnaire, which has been provided to the client for completion. The bi-annual public sustainability reports provided by the client are of high quality with comprehensive pertinent information available, including reporting on numerous Sustainable Development Goals and implementation of BAT and EU Standards.  A significant area of growth for this company is in the supply of renewable energy including biogas, wind and solar. Given the urgent need for response on this loan ESD propose to agree physical review of various facilities at a later date to verify onsite compliance with PRs and agree any actions, if required. There is no GET associated with this project. 

Technical Cooperation and Grant Financing

None

Company Contact Information

Nevenka Subelj
nevenka.subelj@petrol.si
+38614714972
www.petrol.eu
Petrol d.d. Dunajska 50 1527 Ljubljana Slovenia

PSD last updated

24 Jun 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

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.

Specific requests for information can be made using the EBRD Enquiries form.

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 how to submit a Request for review through our confidential online form, by emailmail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.

 

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