Provision of a EUR 90 million long-term loan to Lantmannen ek for (the "Company") to support the Company's expansion of its operations in Romania through investments in a new state of the art bakery in Romania.
The project will support enhanced energy efficiency measures at the new production site and human capital development through an accredited training and work placement programme.
ETI score: 64
The expected transition impact of the project is "Green" as the primary quality and "Inclusive" as the secondary quality. Under the Green quality, the proposed investment will support energy efficiency improvements of the new production plant in Romania. Under the Inclusive Quality, the project will support human capital development through a nationally-accredited work-based learning programme delivering technical production skills in partnership with a local vocational educational institution.
LANTMANNEN EK FOR
Lantmannen ek for is an agricultural cooperative and one of the largest players in agriculture, machinery, bioenergy and food products in Northern Europe. The cooperative is owned by 18,000 Swedish farmers.
EBRD Finance Summary
Total Project Cost
EBRD offers a tenor which is longer than available to the client on the market on reasonable terms and conditions. The Bank's financing provides comfort and encourages Lantmannen to commit to this investment in Romania. Through the Bank's engagement, the Company will ensure compliance and implementation of best practices in terms of environmental and social standards.
Environmental and Social Summary
Categorised B (ESP 2019). Lantmannen is an existing client of the Bank, which has been subject to previous, recent due diligence, and performance to date has been satisfactory. The proceeds of the Bank's investment will be used for capex investments to build a new state of the art bakery production site in Bucharest, Romania. Lantmannen is the largest agribusiness cooperative in Sweden with operations in agriculture, machinery, bioenergy and food manufacturing. Lantmannen has operations in a number of EBRD CoOs including Poland (two bakery manufacturing sites), Romania (one bakery manufacturing site), Ukraine (breakfast cereal production) and Baltics (through its JV Scandagra, a commodity trader and inputs supplier to farmers).
Environmental and social due diligence for this project was undertaken through completion of the standard E&S Due Diligence Questionnaire by the Company as well as reviewing the documents provided by the client as part of their responses to the Questionnaire (Sustainability Report 2022, Lantmannen Unibake Romania SA Quality Policy, 2022 Social Audit report, etc.). Lantmannen has a wide range of policies in place covering key E&S issues including a Company Code of Conduct, a Supplier Code of Conduct, an anti-corruption policy, and adherence to a LEAD Code. The Company has developed a bespoke auditing program through which different entities within the Group are assessed for compliance with the Company's various requirements which are aligned with the scope of the Bank's Performance Requirements.
ESDD concluded that the Company has sufficient E&S systems and policies in place to comply with the Bank's Performance Requirements (PRs) and with national legislation. The proceeds of the Loan will be invested in an EU country, governed by EU law. A supplementary package including an Environmental and Social Action Plan (ESAP) will be also prepared for the project. 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
Company Contact Information
+46 10 556 00 00
Box 30192, SE-104 92 Stockholm
PSD last updated
11 Aug 2023
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Independent Project Accountability Mechanism (IPAM)
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