Belvedere

Location:

Bulgaria

Project number:

35309

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

22 Mar 2005

Status:

Completed

PSD disclosed:

25 Jan 2005

Project Description

The proposed financing will strengthen Belvedere’s operations in Bulgaria and support it in the process of becoming one of the biggest local players in the wine sector and increasing its export sales. Proceeds will be used mainly for the reconstruction of the existing wineries and for acquisition of vineyards.

Transition Impact

The transition impact from the project will result mainly in increased competition in the overall wine production chain leading to grape quality improvements.

(i) Belvedere will invest in vineyards to be able to provide approximately 30% of its raw material needs.

(ii) The projected production growth implies that, despite the presence of own vineyards, the quantity of grapes purchased from the local economy will continue to grow as the production expands and the company will be contributing to quality improvements among its grape suppliers.

(iii) Establishing of own vineyards, as well as the pre-financing programs, will allow Belvedere to set and maintain higher quality standards for grape production, a problem which has plagued virtually all of the Bulgarian winemakers over the last few years, thus affecting the image of Bulgarian wine in international markets.

The Client

Belvedere Capital Management Ltd. is a Bulgarian holding company established to consolidate the wine activities of Belvedere S.A., France in the country which is 100% owned by Belvedere S.A.

EBRD Finance

The total financing package is for up to € 9 million and would be consisting of:

(i) EUR 7 million long-term secured debt

(ii) up to EUR 2 million equity.

Project Cost

Up to EUR 30 million.

Environmental Impact

In accordance with the EBRD's Environmental Policy and Procedures the Bank has categorised this project as B/1 requiring an environmental audit of the Company's current facilities and production processes and an environmental analysis of potential impacts associated with the proposed reconstruction of the wineries and the acquisition of vineyards. Based on the recommendations made by the environmental audit, an Environmental Action Plan has been adopted by the Company.

Technical Cooperation

None.

Company Contact

Mr Nikolay Dalakov, General Manager

Tel: +359 2 976 9450

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

General enquiries

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Public Information Policy (PIP)

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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.