The provision of a US$ 130 million loan to the subsidiaries of Sodrugestvo Group in Belarus, Belagroterminal LLC ("BAT") and Sodrugestvo Trans-Agro LLC ("STA") (the "Companies") to finance capital expenditure, working capital needs, consolidate and extend the maturity of the existing financial debt (the "Project"). Up to US$ 45 million out of this amount is expected to be syndicated to commercial banks through the EBRD's A/B loan structure.
The operation will enable the Companies to finance the acquisition of grain hoppers for the Companies' needs to supply their Belarusian production facility and transport finished products; consolidate and extend the maturity of the existing financial debt of BAT; finance capital expenditure needs including, amongst others, the construction and the equipping of the boiler house, and working capital financing for the optimisation of procurement of raw materials.
ETI score: 64
The transition impact of the Project is expected to derive from the Integrated and competitive qualities. The Project supports improved logistics and infrastructure enabling the Companies to increase their export capacity of high quality products. It also supports the expansion of a private group in the grain hoppers sector, enhancing competition in this sector.
SODRUGESTVO TRANS-AGRO LLC
Sodrugestvo Group S.A., headquartered in Luxembourg (the "Group"), ranks amongst the top-20 processors of soybeans in the world with activities in Belarus and the wider region including CIS, MENA and Latin America.
EBRD Finance Summary
Up to US$ 130 million for the account of the EBRD. Should the project be financed under the EBRD A/B loan structure, up to US$ 45 million out of this amount is expected to be syndicated to commercial banks.
Total Project Cost
Up to US$ 130 million.
The Bank's additionality derives from its ability to provide long-term multi-purpose FX financing to Belarussian Companies.
Environmental and Social Summary
Categorised B (ESP 2019). The transport and processing of agricultural commodities is associated with a range of E&S risks which are typically well understood and readily managed through standard mitigation measures. The Group is an existing client and performance in respect of the existing project has been satisfactory. Due diligence for this Project was conducted internally and included completion of separate questionnaires by BAT and STA and a review of publicly available disclosure on the Group website. The Group is certified to a range of Environmental & Social (E&S) management systems including ISO 9000 for quality, ISO 14000 for environment, OHSAS 18000 for occupational health and safety, a range of food/product safety certifications and certification to the ProTerra standard covering sustainable agricultural practices and tracing for non-GMO soy. Adequate capacity for managing key E&S risks is available within the Group with nominated staff in charge of environmental, H&S, and labour management issues. An Environmental and Social Action Plan (ESAP) has been agreed with the Companies to address issues in relation to the implementation of existing Group management systems in respect of STA, the further development of the Companies' grievance mechanism, and feedstock for the new boiler system.
Technical Cooperation and Grant Financing
Company Contact Information
Mr. Sergey Churkin, CFO
26 Avenue de la Libérté L-1930 Luxembourg
PSD last updated
15 Jun 2020
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