DFF - Bielenda Kosmetyki Naturalne (EBRD-54939)

Countries
  • Poland
Geographic location where the impacts of the investment may be experienced.
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
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Sep 15, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Innova Central Holding SCA
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 21.34 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 20
Converted using 2023-09-15 exchange rate.
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Updated in EWS Mar 9, 2024

Disclosed by Bank Jan 15, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project consists of an equity investment of up to EUR 20 million in Innova Central Holding SCA, a controlling entity of Bielenda Kosmetyki Naturalne S.A., the largest Polish manufacturer of facial care products and other cosmetics. The Bank's funds, together with additional equity contributions from Bielenda's existing shareholders, will be used to support Bielenda's growth through financing the acquisition of Torf Corporation, a Polish cosmetics manufacturer with a complementary portfolio. The transaction will help reinforce Bielenda's position as the leading local player in the Polish health and beauty sector.

The project will support Bielenda's plan of strengthening its position as a successful domestic cosmetics manufacturer in Poland, laying the foundations for the company's dynamic growth in the country and abroad and improving its competitiveness in the uncertain business environment. It will also support the private equity ecosystem in Poland during a period of reduced liquidity and increased investor risk aversion, contributing to the resilience of the capital markets.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Category B (2019 ESP) and Low Risk. An internal ESDD has been conducted by the ESD and also benefited from the external ESDD addressed by 3rd parties as already enquired by the lead investor. The Project does not involve any CAPEX and has limited E&S risks since the impacts are associated with standard manufacturing and supply management operations. The ESDD indicates that both the Acquirer and Torf are in compliance with Poland's and EU legislation and regulations, and have certified management systems of ISO 9001, ISO14001 while Bielenda also holds GMP ISO22716 certificate. Both companies are identified as being capable of implementing the project in line with the Bank's Performance Requirements.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

An equity investment of up to EUR 20 million in Innova Central Holding SCA, a controlling entity of Bielenda Kosmetyki Naturalne S.A. The Bank's funds, together with additional equity contributions from Bielenda's existing shareholders, will be used to support Bielenda's growth through financing the acquisition of Torf Corporation, a Polish cosmetics manufacturer with a complementary portfolio. 

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Bielenda Kosmetyki Naturalne S.A. Subsidiary -
- - - - Innova Capital Sp. z o.o. Client -
- - - - Torf Corporation Subsidiary -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

COMPANY CONTACT INFORMATION

Robert Dobrowolski
https://bielenda.pl/
ul. Fabryczna 20, 31-553 Kraków

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

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 at: 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

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