Sodrugestvo Belarus

Location:

Belarus

Project number:

51992

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

28 May 2020

Status:

Disbursing

PSD disclosed:

15 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

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.

Project Objectives

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.

Transition Impact

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.

Client Information

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

USD 130,000,000.00

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

USD 130,000,000.00

Up to US$ 130 million. 

Additionality

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

None

Company Contact Information

Mr. Sergey Churkin, CFO
s.churkin@sodru.com
www.sodrugestvo.com
26 Avenue de la Libérté L-1930 Luxembourg

PSD last updated

15 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 more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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