Agri Europe Serbia

Location:

Serbia

Project number:

47109

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

06 May 2015

Status:

Cancelled

PSD disclosed:

05 Mar 2015

Translated version of this PSD: Serbian

Project description

The EBRD is providing debt financing of up to €120m in the form of two senior long-term loans to the Agri Europe subsidiaries in Serbia and Ukraine, in order to strengthen the Group’s balance sheet and diversify its operations.
 
The financing package will consist of:
  • a syndicated loan of up to €109m to Agri Europe Serbia;
  • and a parallel loan of up to €11m to Agri Europe Ukraine provided by EBRD.

Transition impact

The Transition Impact potential of the proposed project will derive from:
  • Market expansion through development of backward linkages with supplier farms in Serbia
  • Demonstration effect generated through the financing of a modern greenfield apple orchard and through introduction of quality labelling, initially in the meat sector
Expansion of the ongoing policy dialogue activities in the meat sector in Serbia

The client

Agri Europe is a large diversified agribusiness group which consolidates sugar, meat processing, trading and farming businesses, mainly in Serbia and a smaller investment in Ukraine.

EBRD finance

Up to €120m in the form of a syndicated loan facility of up €109m and an EBRD  loan of up to €11m

Total project cost

Up to €120 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) will be 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

The Project will be supported by the following TCs:
  • Improving Food Quality and Safety Standards in Serbia's Meat Sector. The use of TC Funds will contribute to upgrading the quality and safety standards in Serbia’s meat sector.
Policy Dialogue in the Meat and Dairy sub-sectors in Serbia. The aim of the TC project is to enable the EBRD to engage in policy dialogue in the dairy and meat sub-sectors in Serbia with the overall goal of enabling specific policy reforms in these subsectors.

Company contact:

Vladimir Gavric, CFO

Tel: + 381 11 35 39 528
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.