Prista Oil - Equity

Location:

Bulgaria

Project number:

43824

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

28 Feb 2012

Status:

Repaying

PSD disclosed:

10 May 2012

Project Description

The EBRD is finalising a long-term loan to finance capital expenditures of Prista Oil Holding EAD and Prista Oil Yag San. Ve Tic Ltd (Turkey). The Bank has already signed an equity investment and a convertible loan to Prista Oil Group BV.

The operation will enable Prista Oil Group BV to restructure its shareholding and thereby improve its corporate and shareholders structure.

The capital investment financing will help Prista Oil Group BV to turn around the lubricants business performance, particularly in Turkey.

Transition Impact

The primary goal of the investment programme is to eliminate unprofitable business lines, reduce costs, implement an innovative branded services programme.
(i) : The transaction will also lead to far-reaching corporate governance improvements since it involves a profound legal reorganisation of the Group in order to simplify the Group structure, improve reporting and streamline operations.

The Client

Prista Oil Group BV which owns, inter alia, Prista Oil Holding EAD, a company incorporated in Bulgaria, Prista Oil Yag San. Ve Tic Ltd, a company incorporated in Turkey (both of which produce and distribute engine lubricants) and Monbat AD, a company incorporated in Bulgaria (which produces car batteries for the European market).

EBRD Finance

€36 million comprising a long-term secured loan, an equity investment and a convertible loan. The project is co-financed together with ADM CEECAT, a private equity fund.

Project Cost

€60 million.

Environmental Impact

Categorised B. The independent due diligence, consisting of an Environmental and Social Audit and Analysis on a number of Prista Oil Group subsidiaries in Bulgaria and Hungary, identified a number of issues around waste and materials storage; individual employee exposure monitoring; monitoring of wastewater discharges; and lack of structure in the Stakeholder Engagement process. These issues have been addressed by specific action items in an Environmental and Social Action Plan (ESAP) which was agreed with the Company. ESD also carried out a site visit in 2011 to the new battery recycling facility in Bucharest to assess whether the standards planned by the Company at the time of the original due diligence were adhered to through construction and operation. The visit confirmed that the new operations meet the Bank's Performance Requirements. In view of the equity participation included in the structure of financing, additional due diligence is required on assets including Verila Lubricants plant and Start AD battery manufacturing plant in Bulgaria, oil terminal in Ukraine and oils blending plant in Turkey. Such due diligence has been commissioned and, based on the findings and recommendations of additional ESDD, the existing ESAP will be amended in due course.

Technical Cooperation

An Energy Audit was performed that analysed the energy efficiency performance of the batteries production and proposed additional energy efficiency investments. The Energy Audit was funded by the Italian Government through the Central European Initiative (CEI).

Company Contact

Prista Oil Holding EAD
Attn: Executive Director
fax number + 359 2 868 94 76
Bulgaria, Sofia 1407,
20 Zlaten Rog Street

 

Business opportunities

For business opportunities or procurement, contact the client company.

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