Financed ProjectsNatfood CJSC Operation

Identification Code:

OP/08/0694

Total Operation Cost:

27.250.000

Maturity:

91 months

Operation Status:

Description and Purpose of the Operation:

BSTDB provided a term debt financing to NatFood CJSC, a closed joint stock company established for the purpose of a construction and operation of a new meat processing plant in Armenia. The plant shall consist of several technological lines specialized in the production of fresh packaged meat, smoked sausage, canned meat and semi-finished meat products.

Countries of Operation:

Armenia (100,00 %)

Financial Product:

Loans,Equity Investments

Sector:

Consumer Staples

Domain:

Private

Borrower/Client:

Nat Food CJSC (the "Project Company"), has been established in 2006 for the purpose of the Project.

Co-Financiers/Participants:

EBRD

Guarantors/Sponsors:

Mr. Henrikh Zakharyants is an Armenian entrepreneur and a sole owner of NatFood CJSC and Valletta LLC.

Developmental and Regional Cooperation Impact:

This operation will contribute to the establishment of a modern meat processing plant that will be designed, built and operated in accordance with the best international standards and practices. New jobs will be created as a result of the implementation of the Project. The Operation will contribute to improving standards in the Armenian food processing sector. It is expected that the Project Company will enlarge the local distribution network, particularly in the neighbouring countries, primarily, Georgia and Russia, which is in compliance with BSTDB mandate to promote economic cooperation and trade among member countries in the Black Sea region.

Environmental Classification and Impact (summary):

The Operation has been screened according to the BSTDB's Screened as B0, with few limited EH&S impacts, which are site specific and readily mitigated. The Borrower received all the necessary approvals and licenses necessary to start building the Meat Processing Plant. During construction stage the Borrower is observing the necessary impact minimization measures, such as dust and noise reduction, and worker health and safety. The project technical documentation specifies the Environmental, Health & Safety (EH&S) measures to be followed during operation of the Plant. These refer to air emissions, water discharges, workers health and safety, as well as product safety and hygiene arrangements. The Borrower will install modern equipment for meat processing and storage. The Borrower is required to remain compliant at all times with applicable Armenian EH&S rules and regulations; and report on annual basis on overall EH&S performance.

Operation Leader:

General Industries, Transport, Tourism 1

E-mail:

gitt1@bstdb.org