Financed ProjectsOrhei - Vit

Identification Code:

OP/17/0006

Total Operation Cost:

0

Maturity:

84 months

Operation Status:

Description and Purpose of the Operation:

A long-term corporate loan to Orhei Vit S.A. (Moldova) in the amount of Euro 7,284,000 million with use of proceeds earmarked for CAPEX of the Borrower, working capital and refinancing of existing indebtedness to financial institutions. The loan will support a leading private Moldovan producer and exporter of juices with provision of long-term financing.

Countries of Operation:

Moldova (100,00 %)

Financial Product:

Loans

Sector:

Consumer Staples

Domain:

Private

Borrower/Client:

JSC Orhei Vit, Moldova

Co-Financiers/Participants:

not applicable

Guarantors/Sponsors:

Casa de Comert "VITA" SRL and "AgroVita Comert" SRL, Moldova

Developmental and Regional Cooperation Impact:

The Operation corresponds to the BSTDB Country Strategy for the Republic of Moldova 2015-2018 which assigns priority to financing of the food processing and agribusiness sectors. Given the fact that problems in the Moldovan banking sector prohibit entities in the domestic market to secure long term loans from the domestic banks, BSTDB's financing is a solution for a promising operation. Improved efficiency in production and capacity will likely benefit both upstream and downstream suppliers (such as Moldovan farmers) and consumers. A substantial share of the Borrower's exports are directed to 6 countries, members of BSTDB, the Operation is expected to contribute to the development of trade in the Black Sea Region.

Environmental Classification and Impact (summary):

Category B Operation with medium E&S risks and impacts that are generally limited and can be readily addressed through relevant mitigation measures. The E&S due diligence focused on the potential impacts associated with setting up of the new production line for fruit puree; legal compliance with environmental, labor, and health and safety laws and regulations; existing management systems; labor and working conditions; pollution prevention and abatement; and impacts on the local communities. No material E&S risks and impacts were identified

Operation Leader:

General Industries, Transport, Tourism 1

E-mail:

gitt1@bstdb.org