The EBRD is considering providing a US$ 128 million loan to Olam International, a leading global supply chain manager specialising in agricultural commodities.
The Loan will be intended to finance the procurement, storage and sales operations of the Company’s subsidiaries in Russia, Ukraine and Turkey.
Olam is currently a considerable, yet still fast growing, player on the global supply chain market with a unique integrated model for supply chain management of agricultural products. The Company’s traditional region of operations is Africa and South East Asia – Olam is a relatively new player in the US, Australia, Eastern Europe and the CIS. The expansion of operations of an international reputable player such as Olam in Russia, Ukraine and Turkey, is expected to contribute significantly to backward and forward linkages (and associated skills transfers) and the demonstration of new replicable behaviour/activities.
Bank funds will be lent to Olam International, which will on-lend via subsidiaries in Russia, Ukraine and Turkey.
US$ 128 million
US$ 400 million
The Project was categorised B according to the EBRD’s Environmental and Social Policy 2008.
As a supply chain management company with no operational assets in the Project countries the Project can be considered to have limited direct environmental and social impacts. Whilst Olam International sources, processes and trades a number of high risk product groups such as palm oil, tropical timber, cotton, coffee, chocolate they have a progressive approach to sustainable supply chain management and a number of their products have achieved environmental and/or social certification. Olam are fully committed to complying with the Bank's PRs. No separate ESAP is required.
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.
The Bank is considering TC in cooperation with FAO that would support primary producers who are suppliers to the Company, and to other companies in the market in Russia.
TC is aimed at helping farmers in the south of Russia (Krasnodar region) to enhance yield and quality of the wheat crop.
Senior Vice President, Group Treasurer
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