Financed ProjectsP.Pavlidis Operation

Identification Code:

OP/13/0045

Total Operation Cost:

7.000.000

Maturity:

84 months

Operation Status:

Description and Purpose of the Operation:

A long-term corporate loan to P. Pavlides S.A. (Greece) in the amount of Euro 7 million to support the Company's capital expenditure program of Euro 4.9 million (70% of the loan amount) and to provide it with working capital of Euro 2.1 million (30% the loan amount). The proposed loan from BSTDB will provide the Company with long-term financing, the supply of which is currently limited in Greece. The BSTDB funds will be used to finance capital maintenance and upgrade of the Company's production facilities and capital investments in new equipment that will allow improving energy efficiency of production processes of the Borrower and, thus, contribute to a reduction in costs. The Loan will also be used to provide the Company with a long-term working capital that is essential for canned peach production due to its seasonality.

Countries of Operation:

Greece (100,00 %)

Financial Product:

Loans

Sector:

Consumer Staples

Domain:

Private

Borrower/Client:

P. Pavlides S.A., Greece

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

1) The Bank will provide long-term financing, the supply of which from local financial sector and international institutions is nowadays highly limited in Greece; 2) It will support upgrading of technological base of a leading company operating in an export oriented sector where the position of Greece has been traditionally strong. The Bank will finance investments directed at energy saving, improvement in cost structure of a leading exporter of canned peaches, thus contributing to strengthening of its competitive advantages; 3) The Bank will provide long-term working capital financing to a company whose activities are seasonal and require maintaining considerable permanent investment in the working capital; 4) By financing the largest peach processing company the Bank will indirectly support the Greek agricultural sector that has very limited access to banking sector products and services.

Environmental Classification and Impact (summary):

According to the BSTDB environmental and social screening categories, the Operation has been screened as Category B. The associated environmental, labor, health and safety risks and impacts are not likely to be significant and the existing issues are site specific and limited and can be effectively mitigated and/or avoided by adhering to generally recognized performance standards, design criteria and guidelines for fruit canning industry. The Cannery in Giannitsa is operating in full compliance with national and EU laws and regulations and has valid operating licenses and permits. The most important regulatory licenses and permits without which the Plant cannot operate are the operating license and the environmental permit. The Plant’s Operating License Nr. F.14.1/340/25/1005 has been issued by the Prefecture of Pella in December 2002, is permanent, and may not be transferred. The Environmental Permit Nr. 9416/24-1-2006 has been amendment and reviewed in 2006 by the Department of Environmental and Spatial Planning of the Decentralized Administration of Macedonia and Thrace and expires in 2016. The Company plans to replace another conventional boiler with a biomass boiler in the near future for which it will need to update the Plant’s Environmental Impact Assessment (EIA) study, this being a prerequisite to obtaining a new Environmental Permit before the existing permit expires. The Environmental and Social Assessment of Pavlides Cannery focused on the following key environmental and social issues: existing environmental, quality and social management system; pollution prevention, abatement and resource and energy efficiency; labour and working conditions, including occupational health and safety; product safety including the food safety standards applied; and the supply chain. Altogether these insure an outstanding environmental and social performance of Prodromos Pavlides Cannery and efficiently minimize and/or avoid any potential risk and impact in this respect.

Operation Leader:

General Industries, Transport, Tourism 1

E-mail:

gitt1@bstdb.org