Port of Tallinn Initial Public Offering

Location:

Estonia

Project number:

50111

Business sector:

Transport

Notice type:

Private

Environmental category:

B

Target board date:

23 May 2018

Status:

Disbursing

PSD disclosed:

18 Jun 2018

Translated version of this PSD: Estonian

Project Description

A participation in the Initial Public Offering (IPO) of the Port of Tallinn on the Nasdaq Tallinn Stock Exchange.

Project Objectives

The Project will support improved transparency and efficiency of the issuer and development of the local capital market.

Transition Impact

The transition impact of the Project is primarily generated through the facilitation of capital market development ("Resilient") and improved corporate governance ("Well Governed").

Client Information

AS TALLINA SADAM

AS Tallinna Sadam (the "Port of Tallinn") is a public limited liability company incorporated in Estonia and majority owned by the Government of Estonia (67 per cent following the IPO). AS Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which serviced 10.6 million passengers and 19.2 million tons of cargo in 2017. Via its subsidiaries, the Port of Tallinn also provides ferry transportation services between the Estonian mainland and the largest islands as well as icebreaking and maritime support services.

EBRD Finance Summary

Equity investment of EUR 15.9 million.

Total Project Cost

The total value of the shares offered for subscription under the IPO is EUR 147.4 million.

Environmental and Social Summary

The Project has been categorised B under EBRD's 2014 Environmental and Social Policy. The environmental and social risks associated with operating four existing sea ports are readily identified and mitigated by applying sound environmental and social management practices to the daily operations and further development of the ports. Due to the nature and rules of capital market transactions, the Environmental and Social Due Diligence (ESDD) was undertaken by the Bank's environmental and social advisers relying on publicly available information. The ESDD focussed on a corporate-level review of the Company's management systems, its sustainability strategy and policies and its environmental and social performance and legal compliance status across its assets and operations.

The Company is operating four sea harbours located on the Baltic Sea coast and it is responsible for providing safe navigation, port operations, oil spill and emergency response as well as developing capital investments and carrying out dredging in the port areas under its control. It is also providing environmental services to the ships calling at its ports, including reception and management of solid and liquid wastes from the ships.

The ESDD showed that the Company is currently in compliance with National and EU environmental laws and regulations, and that the Company has sound corporate environmental and social management systems, encompassing its social and environmental performance, employment, health and safety, biodiversity, and community relations. It is implementing good international environmental and social industry practices throughout its operations in line with international maritime environmental and safety standards of, among others, ISO 14001, IMO, MARPOL, SOLAS and HELCOM, as well as voluntary good practice sustainability guidelines for port operations, such as ECOPORTS and ESPO. The Company is committed to avoiding or minimising and mitigating any significant environmental and social impacts from its operations, and it is collaborating closely with maritime authorities, port terminal operators, local communities and other third parties to minimise environmental and social risks and impacts at its ports.

Based on the ESDD, a corporate Environmental and Social Action Plan (ESAP) has been developed so as to ensure the Company will continue to operate in compliance with the Bank's Performance Requirements. The ESAP is included in a Framework Agreement between the Company and EBRD.

The Bank will monitor the environmental and social performance of the Company by reviewing its public reporting on its environmental and social matters and port development projects as well as its reporting to the Bank on the implementation of the ESAP.

Technical Cooperation

None.

Company Contact Information

http://www.portoftallinn.com/
Port of Tallinn Ltd Sadama 25, 15051 Tallinn, Estonia

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

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
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.