Translated version of this PSD: Polish
Project description and objectives
The EBRD is providing a senior secured loan to Tele-Fonika Kable S.A. (the “Company” or “TFK”), the largest cable and wire producer in Central and Eastern Europe with headquarters in Poland. The loan will be used for the refinancing of the existing debt and for the financing of planned investments in innovative cable solutions and related R&D.
The proceeds of EBRD’s financing will enable completion of the comprehensive financial and operational restructuring programme required for continuation of the operational excellence strategy and further development of innovative products.
The project is expected to support the Company’s comprehensive restructuring strategy based on developing more innovative solutions for the cable market and addressing all needs for improvement in the logistics and service areas of the business. Successful transformation would have a strong demonstration effect to the whole mid-to-large business landscape in Poland where restructuring appears to be a significant challenge. It will also show that operational excellence strategy combined with development of new, technologically advanced products is a key to developing a sustainable global business.
Furthermore, the project should also contribute to develop best practices in the areas of corporate governance, which is an essential part of the Company’s strategy.
TFK, founded in 1992, is a leading cable manufacturer in Poland with a diversified product portfolio, more than 3,000 employees working in 7 production facilities and delivering cables to over 90 countries.
TFK is fully owned by its chairman, Mr Boguslaw Cupial. As a result of successful privatisation of four state-owned entities, the Company has quickly grown from a single factory in Myślenice, in southern Poland, to a fully-integrated multi-plant business. The Company’s growth was propelled by the rapid development of Poland’s telecommunications sector in the 1990s.
Provision of a senior secured loan of up to PLN 250 million (EUR 62.5 million equivalent). The Project will be co-financed by a group of commercial banks, including Bank Zachodni WBK S.A. and mBank S.A. acting as Mandated Lead Arrangers.
Total project cost
PLN 1,160 million (EUR 290 million equivalent).
Environmental and social categorisation, impact, and mitigation
Categorised B (2014 ESP). Environmental and social issues associated with restructuring and investments in new technology can be readily assessed and mitigated based on an Environmental and Social Due Diligence (ESDD).
The Bank undertook a preliminary review of the Project in 2013 and this did not identify any material non-compliance issues. The visit also confirmed that the Company has the institutional capacity to implement the Bank's Performance Requirements. The current ESDD confirmed that the Company has the institutional capacity to fully implement the Bank’s PR’s and is in compliance with National and EU regulations.
The Company has a good EHS management system and is implementing best practice with the key sites certified to ISO 14001 and OHSAS 18001. The ESDD identified the need for some further strengthening of the corporate EHS management systems and need for further disclosure of non-financial information in line with best practice. Based on the ESDD an Environmental and Social Action Plan (ESAP) has been developed and agreed with the Company. This is aimed at further strengthening the corporate EHS management systems and ensuring compliance with the Banks PRs, including the development of a more centralized approach to managing EHS issues and CSR at the corporate level.
The Bank will monitor the implementation of the Project and ESAP.
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