Fazer II

Location:

Russia

Project number:

41616

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

15 Feb 2011

Status:

Complete

PSD disclosed:

05 Nov 2010

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a RUB senior secured loan of up to the equivalent of EUR 45 million to OAO Hlebny Dom. The proceeds will be applied to refinance loans obtained to finance a part of a project, which was originally approved by the EBRD and loan agreement signed by EBRD and the Client in 2008 and recently cancelled.

Transition Impact

This Project will impact the Russian sector by demonstrating successful restructuring of acquired plants and transformation into modern, efficient production facilities capable of producing and distributing good quality, high standard, well-packaged bakery products. The Project should also have a positive transition impact on the distribution sector which by applying Fazer’s group quality, packaging and sales conditions (e.g. clearly marked shelf-life data) to a larger market, including key accounts such as major retail operators. Lastly, the Project is expected to have a positive impact on local suppliers, thanks to know-how transfer to suppliers and demand for locally produced quality ingredients, high quality control and delivery standards on the part of local suppliers.

The Client

Fazer Russia, though its Russian holding entity OAO Hlebny Dom.

EBRD Finance

Up to RUB equivalent of € 45 million senior secured loan.

Project Cost

€ 130 million

Environmental Impact

Screened B. The Project was categorised B according to the EBRD’s Environmental and Social Policy 2008. The potential adverse future environmental and social impacts associated with the Project are site-specific and readily addressed through mitigation measures.

Due diligence is still ongoing, following completion an Environmental and Social Action Plan (ESAP) will be developed and agreed with the Company prior to Board submission to ensure the Company's compliance with the Bank’s Performance Requirements.

The Bank will monitor the Company's environmental and social performance for the lifetime of the project through annual environmental and social reporting and via periodic site visits. The Company will be required to immediately notify the Bank of any incidents or accidents likely to have an effect on the environment or worker and public safety.

Technical Cooperation

None.

Company Contact

EBRD Contact: Wojtek Boniaszczuk, Senior Banker
Tel: +44 20 7338 6073
E-mail: boniaszw@ebrd.com

Fazer Contact: Krister Friberg, SVP and CFO
Tel: +358 20 555 3182
E-mail: krister.friberg@fazer.fi

 

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

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