The proposed project establishes the grounds on which EBRD and Lesaffre will cooperate in CIS countries. The project will provide financing to develop some of Lesaffre’s yeast operations in that region, both via past and future acquisitions as well as upgrade and development at its existing subsidiaries in Kurgan and Uzlovaya in Russia and Krivoi Rog in Ukraine.
Transition impact related to the Project is expected to derive from:
- Restructuring and improved efficiency in the management of the acquired plants’ operations, including the environmental one;
- The development of products’ quality, new products’ launches over time and the set up of industry standards by the international leading yeast producer.
Selected CIS yeast subsidiaries of Compagnie des Levures Lesaffre (CLL). CLL is part of Lesaffre Group, the world’s leading producer of yeast and the fifth largest producer of malt.
Equity investment in the Sponsor’s subsidiaries in selected CIS countries to finance over time up to 30% of the Project’s costs.
Up to USD 30 million equivalent over time.
The project has been screened B/1.
The Bank will provide financing to develop some of Lesaffre’s yeast operations in the region, both via past and future acquisitions as well as upgrade and development at its existing subsidiaries in Kurgan and Uzlovaya in Russia and Krivoi Rog in Ukraine. Given that this project involves the existing facilities an environmental audit has been required. Environmental issues associated with the development of the facilities can be readily identified, assessed and mitigated, therefore the project also required an environmental analysis.
Key environmental issues and mitigation
The environmental investigations demonstrate that the project will have limited impacts on the environment all of which can be readily identified, assessed and mitigated. Key environmental issues associated with yeast manufacturing include the generation of significant quantities of waste water and the usage of a large amounts of energy for heating and processing purposes. The Company is well aware of the environmental, health and safety issues associated with its activities and has developed a range of solutions to address those issues. Discussions have been held with the local authorities to agree with the operational parameters for the facilities and to obtain the required permits for operation.
Prior to the purchase, technical experts from the Company assessed the current status and reviewed improvements required to bring the facilities in to line with the Company's standards and local requirements. These investigations included consideration of key environmental issues and an assessment of investments required to ensure that there will be no negative impacts on the environment. As part of this assessment the Company also looked for opportunities to improve the performance of the facilities to, for example, reduce the amount of energy utilised by the Company so minimising potential impacts.
Environmental action plan
The proposed environmental investments and schedule have been presented by the Company to the Bank and will be part of their Agreements, to ensure over time compliance with EU environmental, health and safety standards.
Monitoring and reporting
The Company will monitor the environmental impact of its operations in accordance with national authorities’ requirements. The Bank will monitor the Company's compliance with the applicable environmental requirements during the lifetime of the Project by reviewing annual environmental status of implementation of environmental mitigation and improvement measures. The Bank’s representatives will also conduct periodic site supervision visits when deemed appropriate.
Bertrand de Waegeneire, Treasurer,
Tel: +33 3 20 81 62 02
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