Translated version of this PSD: Serbian
Provision of an up to EUR 25 million long term loan to MK Group, a leading vertically integrated group engaged in sugar production, farming, meat processing, and other activities in Serbia.
The loan proceeds will support the group in further developing its commodity processing and trading operations in the amount of EUR 20 million, and to finance certain capital expenditures in Serbia in the amount of EUR 5 million.
The transition impact of the project is expected to derive from two transition qualities:
The primary transition impact quality of the project is "iompetitive", as the project is expected to lead to enhanced competitiveness and performance of MK Group's commodity processing and trading segment.
- The secondary transition impact quality is "green", as the EBRD financing will also finance Green Economy Transition capital expenditures of the group in the amount of EUR 4 million which are expected to result in greenhouse gas emission savings at the group level.
MK GROUP DOO
MK Group is a leading vertically integrated agribusiness. It is Serbia's largest sugar producer, and is also engaged in farming, meat processing, trading, logistics, and other.
MK Group is a subsidiary of AEC Agrinvestment Limited, one of the largest corporate groups in Serbia, which also operates in Croatia, Montenegro, and Slovenia.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Categorised B (ESP 2014). MK Group is well known to the Bank through previous projects with the group and previous environmental and social due diligence undertaken. The latter confirmed that the group's operations were in compliance with Serbian legislative requirements and that appropriate technical capacity was in place to allow MK Group to manage environmental, health and safety issues relevant to its business. In the context of those previous projects, a number of environmental and social action plans (ESAPs) have been agreed, and implemented, by the group to ensure compliance with the Bank's performance requirements. MK Group will undertake an assessment of the current status of environmental and social management systems in order to establish what further work may be required to ensure that the operations of any new acquisition meets MK Group's standards and the Bank's performance requirements. Following this assessment, MK Group will prepare an appropriate plan as necessary to further develop approaches to environmental and social management and reporting.
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