Early Warning System

Regions

Europe and Central Asia

Geographic location where the impacts of the investment may be experienced.

Countries

Croatia

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

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

Jul 3, 2024

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

Podravka Agri d.o.o.

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Agriculture and Forestry

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, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 53.96 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 50
Converted using 2024-07-03 exchange rate.

Loan Amount (USD)

$ 53.96 million

Project Cost (USD)

$ 359.35 million

Media Documents

Podravka and Fortenova group sign sales agreement for acquisition of Belje, PIK Vinkovci and Vupik -

Primary Source

Original disclosure @ EBRD website

Updated in EWS Feb 18, 2025

Disclosed by Bank Dec 23, 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.

As stated by the EBRD, the project consists of an investment in the amount of EUR 50m to a newly established SPV, Podravka Agri d.o.o., majority owned by Podravka Inc. (the "Sponsor"), for the purpose of the acquisition of Fortenova Group's Agriculture Division, a leading Croatian vertically integrated farming enterprise (the "Target").

The investment will support the Sponsor in its expansion efforts and the implementation of efficiency and profitability improvements at the Target level.

The Target's key activities [...] include livestock farming, meat and dairy production, crop farming and associated ancillary activities.

The due diligence did reveal several E&S issues which will be addressed through actions within the environmental and social action plan (ESAP). Key issues that arose include community complaints in relation to selected pig farms, and the need for better maintenance for a number of facilities to ensure continuation of good operation and adequate protection of health and safety. Other general issues include, for example, the need to continue application of certified management systems and the need to identify affected stakeholders and ensure appropriate communication and information disclosure.

An ESAP to address these issues has been developed and agreed with the Company. Podravka will be required to report on the implementation of the ESAP and on E&S in general throughout the lifetime of the project, via a written annual E&S reporting and additional actions as required by the Bank.

As stated on the company's website, following successful conclusion of negotiations, Podravka and Fortenova group signed a sale and purchase agreement [...] for the purchase of Fortenova group's agricultural segment, which includes Belje, PIK Vinkovci, Vupik, Energija Gradec, Belje, Agro-Vet and Felix.

The transaction is valued at 333 million euros and Podravka will finance this acquisition through loans from commercial banks, with the European Bank for Reconstruction and Development (EBRD) expected to be a partner in the transaction.

Investment Description

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

European Bank for Reconstruction and Development (EBRD)

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the EBRD, Podravka Agri is a newly established SPV, majority owned by Podravka Inc., created specifically for the purpose of the acquisition.

Podravka Inc. is, a longstanding client of the Bank and one of the leading food producers in SEE region. It is listed on the Zagreb Stock Exchange Prime market. In the ownership structure, Republic of Croatia is holding 25.5% of shares while Croatian pension funds are holding 49.9%.

Private Actor 1	Private Actor 1 Role	Private Actor 1 Sector	Relation	Private Actor 2	Private Actor 2 Role	Private Actor 2 Sector
Fortenova grupa d.d.	Undisclosed	Industry and Trade	contracts with	Podravka d.d.	Client	Industry and Trade

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.

Client - Podravka Agri d.o.o.:

Investor Relations
Email: ir@podravka.hr
Phone: +385 48 651 202
Website: https://www.podravka.com/
Address: Ante Starcevica 32, 48000 Koprivnica, Croatia

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