The proposed project is with OJSC Biomedsklo, a Ukrainian glass producer based in Zitomir, Ukraine. Yioula Glassworks of Greece acquired Biomedsklo in 2005 and has commenced a restructuring and modernisation effort. The proposed project is being presented as Phase II of project ID 34977, Stirom Romania approved by the Bank’s Board of Director on 5 April 2005
Yioula is seeking the Bank’s support to complete the post-acquisition restructuring process, to proceed with the expansion of the Company’s glass container plant.
Transition impact is expected to be:
Strong demonstration effect through successful restructuring post acquisition of an existing operation via refurbishment and restructuring investment programmes that will bring the quality up to more mature standards, energy savings and operational efficiency improvements.
Demonstration effect of new replicable behaviour/activities, transfer of know-how and overall improved corporate governance. The Sponsor has agreed to a framework of covenants including acceptable MIS, arms length relationships within the Group including transfer pricing, improved internal controls, IFRS accounting and comprehensive reporting that go beyond the requirements of its principal lenders.
Contribution to market development and consumer benefits: The Project will enable a leading food-packaging manufacturer to maintain expansion in a growing and dynamic market and ensures its competitiveness, through the interaction with other parts of the “food chain”
The project is consistent with the Bank’s Energy Policy (BDS00-010) as it involves reduction of energy and maintenance costs and improvements in the general reliability.
OJSC Biomedsklo, a Ukrainian glass container producer, located in Zitomir, Ukraine (the “Company” or “Zitomir”), a majority owned subsidiary of Yioula Glassworks SA, the largest producer of food and beverage containers and machine-made glass tableware in Greece.
A EUR 10 million senior secured A/B loan to Zitomir, of which EUR 6 million will be provided by participant banks.
EUR 10 million in a first phase.
The project has been screened B/1. Independent environmental consultants have been retained to undertake the required environmental audit and analysis of the Biomedsklo facilities and any resulting recommendations will be formalised in a time-bound, costed environmental action plan. The action plan, which will be agreed with the Sponsor, will aim to ensure compliance with both Ukrainian and relevant EU environment, health and safety standards. The Company will be required to provide the Bank with an annual environmental report on the implementation of the environmental action plan and on any other environment, health and safety issues affecting their operations.
Yioula Glassworks S.A.
Mr. George Fragoulis, CFO
5 Orizomylon Str.
122 44 Aegaleo
Business tel. +30 210 540 3415
Business fax +30 210 544 2421
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