Agri Europe (f.MK Equity)

Location:

Serbia

Project number:

43774

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

16 Apr 2013

Status:

Complete

PSD disclosed:

22 Feb 2013

Translated version of this PSD: Serbian

Project Description

EBRD is considering an equity investment in the amount of up to €50 million in Agri Europe (the “company”), a vertically integrated agribusiness company with its core business in primary agricultural production, agricultural commodity trading, sugar production and trade.

The proposed equity would enable the further consolidation of Agri Europe’s agribusiness operations over the medium term through investments in operations to achieve better operational productivity, and provide working capital financing.

Transition Impact

Key sources of transition impact derive from:

i) setting standards of corporate governance – the Bank’s equity investment will help to streamline the group structure and improve corporate governance standards ahead of an intended IPO;

ii) market expansion – the construction of silos with third party access in Serbia will address one of the key infrastructure bottlenecks in the country;

iii) demonstration of new financing methods – opening up to outside financial investors may have a key signal effect to other private companies in the region. This also applies to the IPO, which would demonstrate the feasibility of such a step to other similarly structured private companies.

The Client

The company consolidates: MK Group (Serbian producer and trader of agricultural commodities), Carnex (leading Serbian meat producer), Sunoko (leading Serbian sugar producer and exporter) and AgroInvest (Ukrainian subsidiary engaged in primary agricultural production). The company’s grain collection and trading activities are supported by its strong agri-infrastructure consisting of substantial storage capacity and transport fleet.

EBRD Finance

Equity investment in the amount up to €50 million.

Project Cost

Up to €50 million

Environmental Impact

The project was categorised B following the due diligence undertaken by a staff member from EBRD’s Environment and Sustainability Department as well as subsequent meetings with key management to review the Company’s environmental and health and safety management systems. Based on the due diligence an Environmental and Social Action Plan (ESAP) was developed to ensure the company's compliance with the Banks Performance Requirements for environment, health and safety and labour. The company will provide the Bank with regular reporting on the implementation of the ESAP and EBRD staff will monitor Environmental and Social performance for the lifetime of the project.

Technical Cooperation

None

Company Contact

Vladimir Gavric, CFO of MK Group
Tel: + 381 11 35 39 503
Email: vladimir.gavric@mkgroup.rs

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.