Don Don Debt

complete

The EBRD is providing financing of up to EUR 10.3 million to Don Don Group (“Don Don”), one of the leading industrial bakeries in south-eastern Europe. The financing will be used for the acquisition of assets of Pekarna Grosuplje and the restructuring of the current loan portfolio of Don Don with a newly structured long-term financing coupled with a working capital facility provided by parallel lenders. Pekarna Grosuplje is historically one of the leading bakeries in Slovenia and currently operates as an in-house bakery of the Slovenian retailer Mercator. The proposed transaction will demonstrate the successful restructuring of Don Don and Pekarna Grosuplje, two compatible regional companies in south-eastern Europe. The joint operations will benefit from the realisation of regional synergies which will lead to increased profitability. In addition, the project will bring improvements in corporate governance and business standards. This will be achieved by implementing a management information system across Don Don subsidiaries in the region, which will enable regular reporting to internal and external stakeholders as well as better budgeting and other decisions. Don Don is one of the leading industrial bakeries in south-eastern Europe. EUR 10.3m in the form of a long term loan to Don Don. EUR 60 million. The project was categorized B as the investments into the acquisition of a bakery are associated with limited standard environmental, health and safety, and social impacts which can be readily identified and addressed. The Bank’s Environmental and Sustainability Department (ESD) has undertaken a site visit and internal environmental and social sue diligence to review the Company's existing operational activities, regulatory compliance status and the EHS risks management to assess its capacity to comply with the Bank's Performance Requirements. Due diligence has established that the Company is generally in compliance with local legislation and the Bank’s PRs. The potential adverse effects are moderate and are associated primarily with air emissions, water consumption, labour conditions and social aspects. An ESAP aimed at addressing the issues identified and ensuring that the Project is structured to meet the EBRD’s performance requirements has been developed and agreed with the Company. It focuses primarily on the improvements of the overall E&S system and safety upgrades, as well as additional safety measures. The Company will be reporting its environmental and social performance and status of the ESAP implementation on the annual basis and the Bank will monitor the progress. Full ESDD of the Target Company will be held after acquisition and an ESAP will be developed to structure the Target Company to meet both national and EU standards for environment, health and safety and EBRD’s ESP 2014.  The Client has committed that the Target Company will be operated and managed in full compliance with the Bank’s performance requirements. None. Ales Mozetic Don Don doo Bulevar Zorana Djindjica 144b 11070 Belgrade +381 11 267 0935