OKIL

Location:

Russia

Project number:

44684

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

23 Jul 2013

Status:

Complete

PSD disclosed:

25 Apr 2013

Translated version of this PSD: Russian

Project Description

The EBRD is considering a EUR 15 mn loan to Russia’s leading label producer for the FMCG (Fast-Moving Consumer Goods) industry, OKIL. The loan will be used to finance the regional expansion of the client’s business, modernisation of production facilities as well as balance sheet consolidation through refinancing of a short-term debt and working capital replenishment.

Transition Impact

The transition impact of the project will be derived from demonstration of improved management and operational practices of the regional companies that will form a part of OKIL group. The improvement criteria will be based on concrete benchmarks linked to operational performance of the group and each particular subsidiary. The project will further increase the corporate governance of these regional companies.

The local SME customers in the regions of the group’s expansion will benefit of the expanded product range of labelling solutions and improved customer service.

The Client

OOO Likoflex.

EBRD Finance

EUR 15 mn corporate loan.

Project Cost

EUR 15 mn.

Environmental Impact

The Project is categorised B under the Bank’s Environmental and Social Policy. Due diligence has confirmed that the environmental and social risks associated with the current and planned operations are site specific and can be managed through the implementation of an Environmental and Social Action Plan (ESAP). Due diligence was carried out by an Independent Consultant who carried out a corporate audit of the capacity and capabilities of Okil LLC and an audit and analysis of the St Petersburg and Ekaterinburg operational sites, and the management systems in place at those locations.

While the management of environmental risk at all levels throughout the Project operations was found to be effective in terms of meeting regulatory compliance, improvements to the corporate and site systems have been made to bring operations into compliance with the Bank’s Performance Requirements and develop Best Practice in this regard. Similarly, the audit and analysis identified that there are opportunities for the St Petersburg facility to improve waste recycling and recommendations have been made in this regard.

Stakeholder engagement was found to lack appropriate grievance mechanisms throughout the Company’s operations and these will require to be drafted and implemented by the Company. The audit identified other issues in relation to materials storage and documentation which require to be addressed and recommendations have been made to address all issues highlighted by the audit. Due diligence found that the planned upgrade works were found to be compliant with the Bank’s Policy.

Technical Cooperation

None.

Company Contact

Alexey Kapkin, CFO
Doroga na Metallostroy str., 12, litera B
Metallostroy,St.Petersburg
Russia
196641
Tel. + 7 812 449 57 01
Email: akapkin@okil.ru
Web site: http://www.okil.ru

 

Business opportunities

For business opportunities or procurement, contact the client company.

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