VMG Akmene (EBRD-51029)

Countries
  • Lithuania
Where the impacts of the investment may be experienced.
Specific Location
Akmene
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
Oct 15, 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
Klaipedos Mediena AB and Vakaru Medienos Grupe UAB
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)
$ 44.20 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 40
Converted using 2019-09-10 exchange rate.
Project Cost (USD)
$ 150.83 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 136.5
Converted using 2019-09-10 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Feb 27, 2020

Disclosed by Bank Sep 10, 2019


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

According to the Bank's website, this project finances the construction and putting into operation of a new greenfield particleboard plant in Akmene, as well as the restructuring of the borrowers' balance sheets. 

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

Klaipedos Mediena AB, a public limited liability company domiciled in Lithuania, active in the wood-processing sector (particleboard and furniture manufacturing).

Vakaru Medienos Grupe UAB, a private limited liability company domiciled in Lithuania, a holding company consolidating operating subsidiaries in Lithuania (including Klaipedos Mediena AB).

The co-borrowers are part of VMG Group of companies, one of the largest Lithuanian groups engaged in wood processing (particleboard and furniture production) and related activities, with operating companies in Lithuania and Belarus.

Contact Information

Company Contact 

Ingrida Mikenaite
ingrida.mikenaite@vmg.eu
Tel: + 370 46 469 423
www.mediena.lt
Liepu St. 68 Klaipeda Republic of Lithuania

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.