Early Warning System

Countries

Romania

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

Mar 19, 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

New Europe Vending S.a.r.l

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)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 11.95 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 11
Converted using 2024-03-19 exchange rate.

Project Cost (USD)

$ 21.33 million

Primary Source

Original disclosure @ EBRD website

Updated in EWS May 1, 2024

Disclosed by Bank Apr 5, 2024

Contribute Information
Can you contribute information about this project?
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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, IVP Fund I, through the Borrower, New Europe Vending S.a.r.l, recently acquired a majority / controlling shareholding in O'Fresh in Romania, with ambition to grow it both organically and through (potential) add-on acquisitions in the SEE region. The project will support: (i) through (a committed) Loan Tranche 1, this recent majority-acquisition by IVP Fund I of O'Fresh; and (ii) through (an initially uncommitted) Loan Tranche 2, potential add-on acquisitions and/or capital investments by the Borrower and/or O'Fresh (subject to their further assessment).

By supporting IVP's recent acquisition of O'Fresh, the project will enable promoting IVP's plans related to: (i) increased market outreach by O'Fresh, including in its recently new sub-segments (bottle-free water coolers / purifiers, office coffee solution, self-service bistros); (ii) improved productivity and efficiencies of scale in O'Fresh; and (iii) enhanced governance through the proper functioning of the new Board of O'Fresh. In parallel, as condition of EBRD financing, the Borrower and O'Fresh will undertake that new vending machines that will be purchased and acquired by O'Fresh will have improved EU energy label classification of C or above (which have higher energy efficiency).

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.

Categorised B (ESP 2019). The installation and operation of vending machines is associated with limited environmental and social impacts.

Investment Description

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

European Bank for Reconstruction and Development (EBRD)

EBRD Finance Summary: EUR 11,000,000.00

A structurally subordinated, payment-in-kind (PiK) loan with long term tenor, comprised of:

- Loan Tranche 1 of EUR 6.0 million to be committed at signing to support (by refunding part of the "bridge funded" costs in relation to) the recent majority-acquisition by IVP Fund I of O'Fresh

- Loan Tranche 2 of up to EUR 5.0 million, which will be initially uncommitted and may be committed in the future (upon request of the client and) at the discretion and subsequent approval of the EBRD to support potential add-on acquisitions and/or capital investments.

Total Project Cost: EUR 19,640,000.00

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.

- Borrower: New Europe Vending S.a.r.l incorporated in Luxembourg, which is (indirectly) fully owned by IVP Fund I and which recently majority-acquired O'Fresh.

- IVP Fund I (Investor): Evolving Europe Principal Investments I SCSp incorporated in Luxembourg, which is a private equity fund focused in the CSEE region and in which EBRD is (and alongside IFC and EIF are) limited partner investor(s).

- O'Fresh: Vending Zone SRL incorporated and operating in Romania, which is an SME that is one of the main operators of snack and (cold / hot) beverage vending machines in the country.

Private Actor 1	Private Actor 1 Role	Private Actor 1 Sector	Relation	Private Actor 2	Private Actor 2 Role	Private Actor 2 Sector
-	-	-	-	New Europe Vending S.a.r.l	Client	-
-	-	-	-	O'Fresh Vending Solutions	Undisclosed	-

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

O'Fresh Vending Solutions
contact@ofresh.ro
+40733770525
+40733770525
https://ofresh.ro/
3 Chitilei Road, Bucharest, Romania

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