Project Description

The transaction envisages providing a long-term loan of up to EUR 25 million to Food Union Europe (the "Company"). The EBRD loan would be part of the EUR 135 million club financing structure alongside other local or international lenders to be used for refinancing its existing financial obligations and providing necessary working capital funding.

Project Objectives

The main objective of the project is to support the Company in its next growth phase, providing access to working capital funding, and in turn leading to improved financing structure allowing the Company to invest in sustainability, productivity, and efficiency improvements.

Transition Impact

ETI score: 61

The expected transition impact of the project is "Resilient" as the primary quality and "Inclusive" as the secondary quality.
Resilient: The project will support the Company to raise a more efficient funding structure and sustain its access to working capital needs.
Inclusive: The project will support human capital development through developing a mentorship program delivering technical logistics skills in partnership with external providers.

Client Information

TO BE DEFINED

Food Union Europe is an international food industry leader focused on ice-cream, and dairy products, and operating primarily in Latvia, Lithuania, Estonia, Norway, Denmark, and Romania. The Company is owned by PAG, one of the leading Asian private equity funds.

EBRD Finance Summary

EUR 25,000,000.00

Total Project Cost

EUR 135,000,000.00

Additionality

The Bank's additionality stems from tailored financing structure, risk mitigation and standard setting.

Environmental and Social Summary

Categorised B (ESP 2019). The procurement and processing of milk and the production of various dairy products is associated with a range of environmental and social (E&S) issues which can typically be addressed through standard industry good practice. E&S due diligence was undertaken internally by the Bank's Environment and Sustainability Department utilising a standard project due diligence questionnaire and follow-up Q&A with the client. Given the nature of the project and the use of EBRD funding, E&S due diligence was focussed at the corporate level. Given that the Company is operating within European member state countries, facilities are required to operate in accordance with European Union standards and requirements for environment, health & safety, and labour management. The Company has appropriate staffing in place to manage E&S issues and facilities are being operated in accordance with certified management systems. E&S due diligence for the project is on-going and, following completion of that process, the Bank will define whether any additional actions are required to ensure compliance with the Bank's Performance Requirements.

Technical Cooperation and Grant Financing

N/A.

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.