Kronospan Smorgon Cluster (EBRD-50752)

Countries
  • Belarus
Where the impacts of the investment may be experienced.
Specific Location
Smorgon
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 24, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Kronospan FLLC
The holder of the loan, grant, or other investment.
Sectors
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 50.56 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported 45
Converted using 2019-06-19 exchange rate.
Project Cost (USD)
$ 50.56 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported 45
Converted using 2019-06-19 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Jul 5, 2019

Disclosed by Bank Jun 19, 2019


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Project Description

According to the Bank's website, this project finances the capacity expansion programme and infrastructure upgrade at Kronospan FLLC's plant in Smorgon, the creation of a furniture production cluster and a multifunctional training and exhibition complex at the site in Smorgon, as well as to restructure the Company's balance sheet. 

Investment Description
  • European Bank for Reconstruction and Development (EBRD)

The EBRD is organising a financing package of €208.8 million out of which up to €40 million will be syndicated to commercial banks.

The total project cost consists of: 1) EBRD A-loan: Capex of EUR 85m, consisting of €40m Capex at Kronospan Smorgon and €45m at Kronospan Mogilev. 2) EBRD A-loan: refinancing of existing EBRD debt of €83.8m, consisting of €44.2m at Kronospan Smorgon and EUR 39.6m at Kronospan Mogilev. 3) EBRD B-loan: refinancing of investment payables of €40m at Kronospan Smorgon.

Private Actors

Kronospan OSB FLLC (Kronospan Mogilev) and Kronospan FLLC (Kronospan Smorgon) are leading producers of wood-based panels in Belarus, subsidiaries of Kronospan Holdings East LTD, Cyprus.

Kronospan is the market leader in the wood-based panel sector. It manufactures wood-based panel products at over 40 sites and has 16 distribution centres in 30 countries.

Contact Information

Natalia Pokinska
n.pokinska@kronospan.com.ua
+380 3344 43 600
+380 3344 43 619
www.kronospan-worldwide.com
Kronospan UA LLC 20 Lutska Street 45400 Novovolynsk Volyn Region Ukraine

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.