Mir Detstva

Location:

Russia

Project number:

41052

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

10 Nov 2010

Status:

Signed

PSD disclosed:

15 Sep 2010

Translated version of this PSD: Russian

Project Description

The EBRD is considering a mezzanine loan of RUB 420 million in favour of OOO “Kompania “Mir Detstva”, a Russian distributor of children’s goods. The loan will enable Mir Detstva increase the duration of its loan portfolio and create a sound capital platform for further operational development.

Transition Impact

The Project will contribute to the development of the Russian market of children’s goods by achieving the following key milestones:

  • The Project will help one of the leading companies on this market, Mir Detstva, improve its corporate governance standards, implement International Financial Reporting Standards and create a solid capital structure;
  • The Project will support the development of a local player offering quality products at affordable price to Russian customers.

The Client

Mir Detstva is the leading distributor of children’s goods in Russia. The Company offers a diversified product range from goods for newborns to toys and clothes. Mir Detstva has developed its own brands, widely recognised in Russia. The Company was created in 1994.

EBRD Finance

Mezzanine loan, secured by shares of companies of Mir Detstva group.

Project Cost

RUB 420 million.

Environmental Impact

Screening categories and rationale for classification

The project involves a general corporate finance to a company. Therefore, the project has been categorised B in accordance with the EBRD E&S Policy.

Information reviewed

Due diligence included a corporate environmental and social (E&S) review, which has been carried out through an Environmental and Social Questionnaire completed by the Client.

Issues identified and mitigation measures

The Company does not have formalised policies and procedures for the management of E&S issues, however its current activities are generally in compliance with the relevant Russian environmental and social laws and regulations.

As part of the Area of Influence, the due diligence assessed the potential E&S impacts that would be associated with the installation of the new manufacturing equipment to start production of newborn bottles, and potential liabilities that might be associated with the existing facilities. The review has concluded that there would be no significant issues.

An Environmental and Social Action Plan (ESAP) has been developed to further improve the E&S performance of the Company and to bring it in compliance with the EBRD E&S Policy requirements. The main action items in the ESAP cover the following areas:

  • Compliance with the EBRD PR requirements by the Company and their main contractors;
  • Development and implementation of EHS, HR, and Supplier Policies and procedures;
  • ESHS Monitoring;
  • ESHSS training;
  • Specific EHS issues related to the new facility;
  • Transportation risks; and
  • Stakeholder Engagement Plan (SEP)

Technical Cooperation

None.

Company Contact

Pavel Kotlyarevskiy
Tel: 8 (495) 363-14-05

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

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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.