The EBRD is considering to provide a medium-term loan to JSFC Sistema as an anti-crisis response aiming to increase Sistema’s ability to support its subsidiary JSC Sitronics – the leading Russian electronics and technology company - throughout the current financial crisis.
The main general sources of the transition impact of the proposed Transaction are related to supporting a local company in its continuing efforts to develop local manufacturing of products that represent new technology standards for Russia.
Joint-Stock Financial Corporation Sistema - the largest consumer services based financial-industrial group in Russia and the CIS with interests in various sectors of the economy, including telecommunications, technology, consumer goods & services and oil & petrochemical.
The Bank will provide a medium-term EUR 120 mln loan to JSFC Sistema
Screened C (2008). Environmental due diligence, undertaken by independent consultants as part of a previous Sitronic’s operation in 2006, did not identified any material environmental or social issues, although a number of improvements were identified to ensure operations are in line with national and sector best practice, inclusive of EU environmental standards. These include the need to strengthen the corporate environmental, health and safety management system as well as the construction of new chemical treatment plants to treat process effluents. On the social and labour side, the Company was reported to have a robust polices and regulations in place, which often exceed national practice. The previous due diligence also addressed environmental, health and safety issues at all the key production sites and a gap analysis was undertaken to assess current compliance with pertinent international requirements and EU environmental standards (including the IPPC, VOC and RoHS Directives among others).
An Environmental Action Plan (EAP) was agreed and forms part of the legal agreements. As part of this present operation, a corporate environmental review and audit will be undertaken, and ESD will undertake and initial site visit to ensure that the conditions outlined in the Company's 2006 Environmental Action Plan (EAP) have been fulfilled and advise on any further due diligence that may be required. Furthermore, where necessary, revisions the EAP will be agreed to address any new and/or ongoing issues.
Gevork Vermishyan, Head of Corporate Debt
Tel +7 495 228 1535
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