Translated version of this PSD: Russian
The EBRD is considering a USD 25.0 million loan to RG Brands in order to finance working capital needs of the Company and support its further growth, including in Kyrgyzstan. The Loan will be made available both in Tenge and USD.
The project will enhance market expansion through backward linkages to local farmers via:
(i) Improving access to finance for dairy farmers in Kazakhstan. By providing a long-term working capital facility, this project will enable the Company to enter into long term contracts with dairy farmers, both large (owning over 100 cows) and small (owning on avg. 5-15 cows).
(ii) Increasing supply of raw milk, fruit and fruit concentrates. RG Brands plans to increase its supply of local raw milk, fruit and fruit concentrates both in Kazakhstan and in neighbouring Kyrgyzstan.
(iii) Providing technical assistance and expertise to dairy farmers. The efforts to improve access to finance will be complemented by providing technical advice and assistance on feasibility studies and project implementation to Kazakh dairy farmers on potential water treatment facilities for the villages where dairy farmers are clustered.
RG Brands is one of the leading food and beverage producers in Kazakhstan with a wide and diversified product portfolio of juice & nectars, water, carbonated drinks, iced tea, UHT milk, packaged tea and snacks.
Working Capital loan of up to USD 25 million (made available both in Tenge and USD) to support the expansion of RG Brands.
USD 25 million.
Categorised B. The Project, comprising of a working capital loan, will not result in changes to the Company's environmental and social impacts. The Bank's environmental and social due diligence (ESD-D) was carried out by Environmental and Sustainability Department and demonstrated that the Company operates in line with local Kazakh environmental, labour and health and safety regulations, however further strengthening of organisational structure to fully understand and meet EBRD Performance Requirements and dedication of appropriate financial resources for environmental and social issues is necessary. The ESAP has been revised and structured to address Company-wide requirements in accordance with 2008 ESP. The Company will be required to provide reporting to EBRD on the implementation of the revised ESAP and on any other environmental and social issues affecting the Company during the reporting period. A monitoring visit by the ESD or appointed consultants will be carried out within a year from signing the loan.
Mr. David Westall, Chief Executive Officer
Raiymbek Avenue, 212b
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