Provision of a EUR 30 million long-term loan to Scandagra Group A.B. ("Scandagra" or the "company"), a leading agribusiness trader and inputs supplier to farmers in Lithuania, Latvia and Estonia.
The EBRD funding will be used to finance part of Scandagra's working capital needs.
ETI score: 60
Transition impact of the project is expected to stem from the Green transition quality. The EBRD financing will support Scandagra expanding and promoting organic and sustainable agricultural practices.
SCANDAGRA GROUP AB
Scandagra Group is an agribusiness trader and supplier to farmers in Lithuania, Latvia and Estonia, offering agricultural solutions from purchasing, warehousing, drying and cleaning of both conventional and organic grain, to fertilizer packaging and consulting services. The company is a joint venture of two Scandinavian agribusiness cooperatives - Lantmannen ek. ("Lantmannen"), a Swedish cooperative, and Dansk Landbrugs Grovvareselskab a.m.b.a. (DLG), a Danish cooperative.
Lantmannen is an agricultural cooperative and a leader in agriculture, machinery, bioenergy and food products in northern Europe. The cooperative is owned by 25,000 Swedish farmers.
DLG is an agricultural cooperative and a leader in agriculture, nutrition, animal feed and energy sectors in northern Europe. The cooperative is owned by 26,000 Danish farmers.
EBRD Finance Summary
Total Project Cost
EBRD offers a tenor which is longer than available to the client in the market on reasonable terms and conditions. The Bank's participation in the company's debt portfolio will help to diversify its lender base (currently working with only two local commercial banks). The Bank's non-financial additionality is also expected to stem from planned TC support to promote sustainable agriculture by enabling farmers in the Baltic states to be able to start measuring their environmental impact and develop improvement strategies.
Environmental and Social Summary
Categorised B (ESP 2019). The trading of agricultural commodities and the provision of agricultural inputs is not associated with significant environmental or social issues. Scandagra is a trader of grain in Estonia, Latvia and Lithuania and as a supplier of farming inputs to over 6000 local farmers. Scandagra is engaged in sourcing and distributing of fertilisers, seeds and crop protection products, which are provided in the form of pre-financing to farmers. Inputs are sourced from leading regional and global suppliers.
The Company has sufficient E&S systems and policies in place to comply with the Bank's PRs. The proceeds of the Loan will be used for working capital financing of the Scandagra Group operations in the Baltic Countries all of which are governed by EU law. The Company have confirmed that their operations are subject to regular assessment and monitoring by the relevant environmental, health, safety and labour authorities and have further confirmed that the Company is in compliance with the required regulations and laws. Responsibility for environmental, health and safety issues is managed at both the Group level and at the level of individual subsidiaries where there are designated managers for environmental, labour, health and safety and supply chain issues. Selected facilities are certified to internationally recognised management systems such as ISO 9001 and 14001 although this is done on a needs basis depending on activities and the associated risks. When necessary, external consultants are retained to provide advice to the Company on management of issues and changes that may result from legislative amendments.
Human resource issues are again managed at the Group and individual facility level. The Company has a modern and progressive approach to management of HR and is in a constant process of reviewing and updating its HR policies and procedures to meet best practice. The Company undertakes an annual Employee Engagement and Effectiveness Survey and results are reported back to employees and improvement plans agreed as necessary. Health and safety is likewise managed in accordance with national legal requirements and external consultants are utilised to undertake risks assessments and agree action plans and safety instructions as necessary.
The Company will be required to report to the Bank on an annual basis on the implementation of the PRs.
Technical Cooperation and Grant Financing
The Bank is investigating the potential to support the client on the development of innovative sustainability and climate change initiatives in its operations and supply chain. The final scope of the technical assistance assignment and budget will be defined during due diligence.
Company Contact Information
+370 694 54 019
Ukmerges g. 283, LT - 06313, Vilnius
PSD last updated
09 Sep 2021
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