The EBRD is considering providing a loan to MK Group and Sunoko. The funding, if approved by the EBRD’s Board of Directors, will be used for:
(i) balance sheet restructuring providing a more stable platform for the growth of its operations,
(ii) working capital financing for primary agriculture and
(iii) energy efficiency investments in Sunoko’s sugar operations to achieve better operational productivity.
The Transition Impact potential of the proposed project will derive from:
1) Backward linkages and transfer of know-how to farmers MK Group and Sunoko are cooperating with.
2) Setting standards in energy efficiency in the sugar processing sector, and
3) Corporate governance improvements through increasing the financial transparency of the Group.
MK Group comprises 35 affiliated companies in Serbia and is one of the leading Serbian producers and traders of agricultural commodities. The Company is active in primary agricultural production, soft commodity trading and owns and manages sizeable grain storage capacities.
Sunoko is the leading Serbian sugar producer with subsidiaries involved in sugar refining and trade. Sunoko operates 4 sugar refineries in Serbian region of Vojvodina.
Total provided financing will be in the amount of up to €80 million. Out of that amount, EBRD will finance the project up to €40 million while the remaining amount will be syndicated to international commercial banks.
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.
Mr. Vladimir Gavric
For business opportunities or procurement, contact the client company.
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