DFF – Uje Rugove senior loan

Project Description

Provision of an ESG-linked, long-term, senior loan to Uje Rugove to support its investment plan related to: (i) purchase and installation of new and automatic filling lines for glass bottles, aluminium, cardboard, barrel, and syrup; (ii) purchase and refurbishment of adjacent facility for the installation of afore-mentioned filling lines, and (iii) associated working capital.  

Project Objectives

The project will support Uje Rugove’s investment plan that will enable it to pursue its strategy of expanding into new market routes by: (a) launching new product categories – i.e. carbonated mineral water, flavoured and infused water (both still and carbonated), and (peach and lemon taste) ice teas; (b) expanding its market and sales presence in Albania and North Macedonia; and (c) launching new can and cardboard packaging, as well as more efficient and modern glass bottle and barrel packaging. The project and financing involve also ESG-linked objectives related to improvement in the water use ratio, reduction of glass bottle and plastic barrel packaging waste in production, introduction of at least 50% recycled stretch film and labels in packaging, as well as measures for supporting equality of opportunities. 

Transition Impact

ETI score: 80

Competitive as the primary TI quality, as the project will support the Company’s expansion plans as outlined in Project Objectives, and its competitiveness through the introduction of higher value-added product categories and improved economies of scale. 

Green as the secondary TI quality as the project has a GET share of 75% related to the sustainability improvements expected to result from its ESG-linked objectives and measures as outlined in the Project Objectives.

Client Information

UJE RUGOVE SHPK

Uje Rugove sh.p.k (the “Company”) is an SME company established and operating in Kosovo since 2006. It is the main producer of bottled natural water in Kosovo. 

EBRD Finance Summary

EUR 6,000,000.00

ESG-linked, long-term, senior loan of up to EUR 6.0 million to be provided to the Company in two tranches (Tranche 1 of up to EUR 3.5 million and Tranche 2 of up to EUR 2.5 million), which are both expected to be signed in September 2023. The transaction is also envisaged to be offered to Enterprise Expansion Fund II Western Balkans (“ENEF II”) for co-financing of at least 50% of the loan.

Total Project Cost

EUR 6,000,000.00

Additionality

– EBRD offers and mobilizes financing that is not available in the market from commercial sources on reasonable terms and conditions, such as larger amount and longer tenor of EBRD loan that is necessary to structure the project.
– Client seeks / makes use of EBRD expertise on higher (above “business as usual”) environmental and social standards related to ESG-linked KPIs aimed at improvement in water use ratio, reduction of glass bottle and plastic barrel waste in production, achievement of at least 50% recycled stretch film and labels in packaging, adoption of gender and equal opportunity policy and objectives.

Environmental and Social Summary

Categorised B (ESP 2019) and rated Low-Medium Risk.  Environmental and social risks related to the Project are predominantly site specific and can be managed by appropriate mitigation measures. The E&S review covered a wide range of topics including the organisational capacity for E&S management, occupational H&S, food safety, resource efficiency, contractor management, supply chain management, community H&S and labour practices. To address identified E&S issues, an environmental and social action plan (ESAP) has been developed and agreed with Company. The ESAP is structured to ensure the Company’s compliance with the Bank’s Performance Requirements and includes measures to implement E&S management systems, implement H&S oversight of construction contractors and suppliers. The Company will be required to provide annual reporting on its E&S performance and implementation of the ESAP.

Technical Cooperation and Grant Financing

Legal consultancy for due-diligence and preparation of financing documents with costs up to EUR 53,000 will be covered 80% from ENEF II related TC funds made available by the Small Business Impact Fund from a contribution by Italy and 20% from the client’s contribution.

Company Contact Information

Visar Kelmendi
info@rugove.eu
+38338560462
www.rugove.eu

Implementation summary

PSD last updated

17 Aug 2023

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

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General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.