RLF - Volynholding EUR 42 million loan Ukraine

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of up to EUR 42 million senior secured loan to LLC Volynholding, a subsidiary of Nestle S.A., for financing investments to develop a new production facility in Ukraine.

Project ID 54570

Status Disbursing

Location

Ukraine

Business Sector

Food and Agribusiness

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Oksana Baliasnikova
Oksana.Baliasnikova@ua.nestle.com
+38 098 485 11 11
https://www.nestle.com/
Verkhniy Val Street 72-A, Kyiv 04070 Ukraine

Project ID 54570

Status Disbursing

Location

Ukraine

Business Sector

Food and Agribusiness

Notice Type

Private

Environmental Category

Approval Date

19 Jul 2023

Disclosure date

01 Sep 2023

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

RLF - Volynholding EUR 42 million loan Ukraine (Ukrainian) (PDF, 0.29MB)

Project description

Provision of up to EUR 42 million senior secured loan to LLC Volynholding, a subsidiary of Nestle S.A., for financing investments to develop a new production facility in Ukraine.

Project objectives

The Project will support development of a new production site in the Western part of Ukraine to create a food production hub in the region.

Transition impact

ETI Score:70

ject is under the Resilience and Livelihoods Framework and follows the Transition Impact rationale of the framework, stemming from Resilient and Inclusive qualities.

Under the Resilient quality, the Project will support the development of a new production facility in the Western part of Ukraine, and keep economic activities in the local food production sector. As for the Inclusive quality, the Project aims to preserve the livelihoods of people directly affected by the war.

Client information

VOLYNHOLDING LLC

Volynholding LLC is a limited liability company incorporated in Ukraine and a fully owned subsidiary of Nestle S.A. ("Nestle", or the "Group"). Nestle is a multinational food and beverages company, headquartered in Vevey (Switzerland).

EBRD Finance Summary

EUR 42,000,000.00

Total project cost

EUR 42,000,000.00

Additionality

A result of the war on Ukraine, the market for liquidity and long-term financing in Ukraine is almost closed, with both local and international financial institutions tightening their risk appetite. The Project loan offers financing that is not available in the market from commercial sources on reasonable terms and conditions that are necessary to finance LLC Volynholding's investment plan.

Environmental & Social Summary

The proposed Project has been categorised B in accordance with the 2019 EBRD Environmental and Social (E&S) Policy. The new site will start operations upon completion, which is expected early next year (2024). Existing management systems will be extended to new manufacturing facility, including certification to ISO 9001, ISO 14001, ISO 45001, FSSC 22000, with the aim to have these systems in place by Q2 2024. Nestle has in place a broad range of approaches, policies and procedures covering the range of Performance Requirements (PRs) of the Bank covering topics including climate action, waste reduction, protecting nature, water stewardship, human rights, sustainable sourcing, taking care of people and communities and ethical and responsible business practices. Within each of these areas, the Group has set global and local targets and defined KPIs to measures progress, as well as all required internal and external reporting structures. Nestle has confirmed that its supply chain processes have been, and will be, applied in this facility including risk mapping of supply chains. Given the above, applied at the local, regional and global levels, it is judged that the Group has sufficient capacity and commitments in place to meet the Bank's PRs. No additional actions will therefore be required of the Group. The Group will be required to provide annual reporting on the key E&S topics relevant to the project, including the roll-out of the various approaches and management systems for the Volyn facility.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Oksana Baliasnikova
Oksana.Baliasnikova@ua.nestle.com
+38 098 485 11 11
https://www.nestle.com/
Verkhniy Val Street 72-A, Kyiv 04070 Ukraine

PSD last updated

01 Sep 2023

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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RLF - Volynholding EUR 42 million loan Ukraine

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)