Agrokor Equity

Location:

Croatia

Project number:

36887

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

C

Approval date:

15 Jun 2006

Status:

Disbursing

PSD disclosed:

09 May 2006

Project Description

The proposed project consists of an equity investment in the Agrokor d.d. by participating in an increase of the Agrokor’s share capital. The purpose of the Project is to assist the Company in

(i) financial restructuring of the balance sheet by decreasing its financial leverage,

(ii) enabling the Company to continue investments in its core businesses in the region, and

(iii) raising the Company’s profile among investors to prepare for a potential future IPO.

Transition Impact

The transition impact relates to corporate governance improvements (e.g. further improvement of company's controlling bodies practices including the Supervisory Board, improvement of internal controls, further implementation of information security management system, etc.).

The project will also enable the Company to continue selective investments in its core business in the region which will contribute to increased competition.

The Client

Agrokor d.d., the leading producer and distributor of food and beverage products and largest retailer in Croatia.

EBRD Finance

EUR 110 million equity investment.

Project Cost

EUR 110 million.

Environmental Impact

The project has been screened C/1 requiring an environmental audit of the company's corporate environmental policies, procedures and practices and site reviews for a sample of the company's production facilities. An international environmental consulting company has been selected to undertake this work which has already begun. Following completion of the audit, any resulting recommendations will be formulated into a time-bound, costed environmental action plan ("EAP"). The aim of the EAP will be to ensure compliance with relevant host country environmental standards, EU environmental standards and any other relevant good international practice. The company will be required to provide the Bank with an annual environmental report on the implementation of the EAP and any other environmental matters. This PSD will be updated following completion of environmental due diligence to include summary information on the EAP and any other environmental actions agreed with the company.

Technical Cooperation

None.

Company Contact

Anja Linic, PR Director
Tel: +385 1 48 94 304
E-mail: anja.linic@agrokor.hr

Tomislav Matiija Varga, Director in Corporate Finance
Tel: +385 1 48 94 024
E-mail: tom.varga@agrokor.hr

 

 

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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