This project is still under review by the EWS. Project information and/or project analysis may be incomplete.
RG Brands Loan Facility (EBRD-47579)

Countries
  • Kazakhstan
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
Active
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
Jun 24, 2015
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.
Investment Amount (USD)
Not Disclosed
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.
Primary Source

Original disclosure @ EBRD website

Disclosed by Bank May 22, 2015


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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.
TRANSLATED VERSION OF THIS PSD:RUSSIAN Russian PROJECT DESCRIPTION The EBRD is considering a long-term loan facility of up to USD 49.2 million in Kazakhstan Tenge (KZT) equivalent to RG Brands LLP (the "Company" or "RG Brands"), one of the leading branded food and beverage producers in Kazakhstan, based in Almaty. The loan facility will finance the Company's working capital needs, capital investments as well as refinancing of existing debt. TRANSITION IMPACT The Project will enhance the impact of the existing working capital loan provided to the Company in 2013 and facilitate market expansion through backward linkages to local dairy farmers and fruit concentrate suppliers. In addition, the Project will be setting standards for business conduct via introducing improvements to the production process that would reduce amount of packaging materials used and thus indirectly reduce CO2emission. THE CLIENT RG Brands JSC is one of the leading food and beverage producers in Kazakhstan with a wide and diversified product portfolio of juice and nectars, water, carbonated drinks, iced tea, UHT milk, packaged tea and snacks. EBRD FINANCE Up to USD 49.2 million loan in KZT equivalent. PROJECT COST USD 49.2 million in KZT equivalent ENVIRONMENTAL AND SOCIAL CATEGORISATION, IMPACT, AND MITIGATION Categorised B. Through earlier projects with the Company, the Bank has identified the key E&S issues associated with the operations of RG Brands and has agreed an Environmental and Social Action Plan (ESAP) to address those. The Bank's previous environmental and social due diligence (ESDD) was carried out by ESD and demonstrated that the Company operates in line with local Kazakh environmental, labour and health and safety regulations. Further strengthening of the Company's organisational structure to fully understand and meet EBRD Performance Requirements and dedication of appropriate financial resources for environmental and social issues was necessary. Delays in the implementation of previous requirements and non-compliances identified during monitoring visits was evidence of this lack of robust management of E&S issues. Reporting to date has demonstrated that the Company is now dedicating more resource and effort into E&S issues and that operations are being conducted in accordance with the agreed ESAP. This new Project with the Company will not result in additional environmental and social impacts beyond those already reviewed and understood by the Bank. No further ESDD was required for the new project. The Company will be required to continue to provide reporting to EBRD on the implementation of the revised ESAP and on any other environmental and social issues affecting the Company during the reporting period. TECHNICAL COOPERATION None COMPANY CONTACT RG BrandsAgybayev Askhat CFOUngarbayev Alibek Financial DirectorRaiymbek Avenue, 212bAlmaty 050034Kazakhstan
Investment Description
Here you can find a list of individual development financial institutions that finance the project.

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.
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.

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