Soufflet MPF increase

Location:

Regional

Project number:

33593

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

09 Dec 2003

Status:

Board Approved

PSD disclosed:

03 Nov 2003

Sub-projects signed under this framework

Project Description

The proposed project will enable the Bank to continue providing debt and equity financing to the client’s subsidiaries in the Bank’s countries of operation similar to the terms of the Original Multi-Project Facility (“MPF”) signed with Groupe Soufflet in 1998 (as further amended and restated in 2004 and amended in 2008 and 2010) over the next five years. The Bank’s individual sub-projects under the MPF are directed to

(a) develop further the client's leading market position in the malting sector as well as other core businesses in the region
(b) improve supply and quality of raw materials from the primary farming sector
(c) develop grain infrastructure in the region
(d) support the Group’s investments in energy efficiency initiatives.

In line with the above, the Bank is considering a EUR 55m financing of a regional working capital line for the procurement of agricultural commodities. This investment aims at enhancing the Group’s sustainable agricultural supply chain.

Transition Impact

(a) The transition impact of the extended MPF is expected to derive from strong upstream linkages with the barley growing sector. In line with the Group’ strategy in CEE and FSU countries, Soufflet will continue to strengthen its local procurement of raw materials to improve cost competitiveness.

(b) Strong upstream linkages under the Framework will provide a stable market for local farmers: As Soufflet increases its local input sourcing for trading and processing, more farmers could benefit from a long term client relationship, improving market stability for their products, while benefiting from technical assistance in crop growing.

(c) Stimulating competitive behaviour and market orientation in other sectors of the economy, most importantly in primary agriculture through interactions with suppliers and clients.

(d) Have a demonstration effect on both domestic and foreign investors associated with a variety of new ways of financing projects in the agribusiness sector.

(e) Introduce significant efficiency improvements to the costly and energy intensive malt production which will result in considerable energy savings and substantial environmental benefits by lowering emissions from the operations.

The Client

Groupe Soufflet is a leading producer of malt from barley and milling company in Europe. The client is also the leading malster in Eastern Europe following investments with the Bank in Russia, Poland, the Czech Republic, Ukraine, Romania and Kazakhstan.

EBRD Finance

An extension of the Soufflet Multi-Project Facility with unchanged limit of EURO 130 million for 5 additional years, available for individual investments. Investments may take the form of unsecured long or short term debt, preferred equity financing, or common equity investments in project companies.

Project Cost

€130 million.

Environmental Impact

During the course of its operations, the Group has demonstrated strong commitment to environmental issues and its ability to manage the environmental issues associated with its operations.
 
Environmental issues that may arise on the type of projects considered could relate to such things as: regulatory compliance and permitting requirements, waste-water treatment processes, solid waste management and contingency planning and emergency response. The Group will be required, for each project, to follow the Bank's Environmental Procedures for Multi-Project Facilities, with support from independent environmental consultants where necessary, and to demonstrate to the Bank such undertakings in the form of environmental reports. This will ensure, among other things, that projects are being structured in accordance with national and EU standards. Subsequently, each project company will be required to provide regular monitoring reports on environmental, health and safety matters.

Technical Cooperation

None.

Company Contact

Mr. Marie-Ange Matheui
Finance Director
Groupe Soufflet
 

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.