Financed ProjectsNeochimiki

Identification Code:

OP/04/0435

Total Operation Cost:

0

Maturity:

84 months

Operation Status:

Description and Purpose of the Operation:

The operation involved the provision of a long-term corporate loan to Neochimiki L. V. Lavrentiadis S.A. for the financing of its development plan. The strategy of the group consisted of: (I) expansion in the Black Sea region (Bulgaria, Romania and in the longer term Ukraine) with a view to maintain market leadership to the detergents market and, (II) increasing production levels in Greece. Internally, the remaining portion will consist of short term credit lines and bond loans from Greek and international banks as well as the BSTDB loan.

Countries of Operation:

Greece (100,00 %)

Financial Product:

Loans

Sector:

Materials

Domain:

Private

Borrower/Client:

Neochimiki Group has been founded by the Lavrentiadis family, which is operating in the detergents sector since 1974. The activity of the group includes trading, producing, packaging and repackaging of chemical raw materials.

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

The operation is significant in its regional dimension, as Neochimiki is planning to expand its commercial activities in Bulgaria and Romania and sells an increasing percentage of its products in the BSEC countries (excluding Greece). The developmental aspect looks also important in view of the job creation effect in Romania and Bulgaria, as well as in Atalanti (Central Greece) where the production plant is situated.

Environmental Classification and Impact (summary):

According to the BSTDB screening categories, the project has been screened as B0, meaning that an Environmental Assessment is required, and no Environmental Audit. Environmental Assessment is needed due to the nature of the operation and EH&S implications/risks it bears. Environmental Audit was deemed unnecessary due to the fact that after the site visit and documentation review no issues of past contamination, present pollution, or legal non-compliance have been revealed. The considered environmental, health and safety issues are not to present any significant impacts, due to the adequate control, preventive and mitigation measures applied by the Client. The Loan Agreement requires the Borrower to ensure a continuous legal compliance with the applicable EH&S requirements, and submit to the Bank annual reports on EH&S performance.

Operation Leader:

General Industries, Transport, Tourism 1

E-mail:

gitt1@bstdb.org