Provision of a EUR 30 million long-term loan to Scandagra Group A.B. ("Scandagra" or the "Company"), a leading agribusiness trader and inputs supplier to farmers in the Baltics region.
The EBRD funding will be used to finance part of Scandagra's working capital needs in the Baltics region.
The transition impact of the Project stems primarily from Green Economy Transition ("GET") activities in the area of sustainable land use. The EBRD financing will support Scandagra in expanding and promoting organic, sustainable and innovative agricultural practices in the Baltics, including through farmer trainings, scaling up test fields, and supply and procurement of organic products.
SCANDAGRA GROUP AB
Founded by two leading agriculture cooperatives DLG (Denmark), and Lantmannen (Sweden), Scandagra Group is an agribusiness trader and supplier to farmers in the Baltics region, offering agricultural solutions from purchasing, warehousing, drying and cleaning of both conventional and organic grain, to fertilizer packaging and consulting services.
Lantmannen is an agricultural cooperative and a leader in agriculture, machinery, bioenergy and food products in Northern Europe. The cooperative is owned by 25,000 Swedish farmers. DLG is an agricultural cooperative and a leader in agriculture, nutrition, animal feed and energy sectors in Northern Europe. The cooperative is owned by 26,000 Danish farmers.
EBRD Finance Summary
EUR 30 million long-term debt financing.
Total Project Cost
Environmental and Social Summary
Categorised B (ESP 2014). The trading of agricultural commodities and the provision of agricultural inputs is not associated with significant environmental or social issues. Scandagra is a trader of grain in the Baltic region and a supplier of farming inputs to over 1000 local farmers. Scandagra is engaged in sourcing and distributing of fertilizers, seeds and crop protection products, which are provided in the form of pre-financing to farmers. Inputs are sourced from leading regional and global suppliers.
The Company has sufficient environmental and social (E&S) systems and policies in place to largely comply with the Bank's Performance Requirements (PRs). The Company has adequate capacity in the form of appropriately qualified staffing and appropriate policies and procedures in place to adequately manage the limited E&S issues associated with their business. As part of the Project, the Company will develop a group level grievance mechanism for staff within a timeframe agreed with the Bank. The Company will be required to report to the Bank on an annual basis on the implementation of the PRs and the development of the grievance mechanism.
The Bank is considering supporting Scandagra to expand the scope of its farmer trainings in the
Baltics region to cover additional sustainable agricultural practices.
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