VENA RESTRUCTURING AND EXPANSION

Proposed loan to finance expansion of the production capacity of a brewery, located in St Petersburg, Russia.
Objective:  Purchase and installation of filling lines and brewing equipment in order to significantly increase beer production capacity.

The project will enhance the market-based interactions in the beer and beverages sector, as increased production volume will lead to further development of the distribution network and strengthen relationships with suppliers.

AO Vena, a St Petersburg-based brewery, majority owned by Sinebryhoff, the Finnish subsidiary of Carlsberg Breweries A/S. The EBRD owns 33 per cent of the shares in Vena.

Up to US$80 million (€90 million) loan.

US$88 million (€99 million).

The project was screened B/1, requiring an updated environmental audit and an environmental analysis. An environmental audit was conducted as part of the original privatisation and a number of issues raised. These have been dealt with over the last six years and the company has continued to report to the Bank on an annual basis with regard to ongoing compliance with national health and safety requirements. The company is also required to comply with the environmental policy and management procedures of Carlsberg Breweries. For the expansion, the company has been asked to provide additional information on current compliance issues, potential impact associated with the expansion, compliance with European Union environmental, health and safety standards and any national requirements relating to permitting expansion of the facility. This information will be provided to the Bank for review prior to approval of the project. The company will continue to report to the Bank on an annual basis.

None.