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.
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.
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.
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 firstname.lastname@example.org 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.