The EBRD is considering providing up to USD 20 million in debt financing to Agrofusion, with the goal of funding its capital expenditure, medium-term working capital as well as restructuring its balance sheet.
The Client is the first and only modern, vertically-integrated tomato paste producer for the food industry market in Ukraine. The Transition Impact potential of the Project will derive from:
1) demonstration of sustainable agriculture and farming techniques for increased food security in the region;
2) skills transfer of modern farming techniques and training by a western agricultural expert specialising in tomato farming; and
3) setting standards for resource efficiency improvements with investments to promote water and energy recovery.
Agrofusion is the largest vertically-integrated Ukrainian industrial tomato paste producer for the food industry, which cultivates 11,500 hectares of land in the south of Ukraine.
Up to USD 20 million debt financing.
USD 20 million.
The project was categorised B and due diligence was undertaken by a member of the Bank’s Environment and Sustainability Department who visited both the Southern and Northern Plants and engaged in a number of discussions with a wide range of Company staff. The Company also provided a range of written documentation including a detailed environmental and social due diligence questionnaire.
The Company’s activities are associated with limited environmental and social impacts. The production facilities of the Company are very new and utilise the latest equipment. The Company has management systems in place with a number of staff covering environmental, health and safety and labour issues and have a good understanding of the key concepts underpinning sustainable behaviour. The Company implements a quality system, focused mainly on food safety now, which it is aiming to expand out to include environmental and health and safety issues hence creating a total quality system. This organised approach to environmental and health and safety issues is mirrored in the Company’s approach to labour issues which is fully compliant with the Bank’s PR2.
The Environmental and Social Action Plan agreed with the Company focuses on the continued development of the total quality system with agreed dates for the implementation of the ISO 14001 environmental management system, and the OHSAS 18001 system for management of health and safety. There will be a review of the Company’s current operations against the EU’s Best Available Techniques defined for the Food, Drink and Milk Industries and identify key stakeholders and develop a Stakeholder Engagement Plan as necessary.
The Company will be required to comply with the Bank’s Performance Requirements and provide annual reporting on the implementation of the ESAP and any other environmental and social issues.
The project envisages the use of Technical Cooperation funds to involve a Western agronomist, who would advise the Client on how to maximise the effectiveness of modern tomato farming techniques in order to increase yields and to provide training to the Client’s / third-party tomato farmers and to graduates from the local agricultural universities.
Elena Schepelenko, CFO
Tel: +38 0512 587910
For business opportunities or procurement, contact the client company.
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