Idea

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The EBRD is considering making a loan of up to EUR 70 million to Serbian retail company Idea d.o.o to support the expansion of the company’s retail network in Serbia and the financial restructuring of its balance sheet. The project will support a regional investor in Serbia and its development of modern retail formats particularly outside Belgrade where the penetration of modern retail is still low. In particular in the regions, this cross-border transaction will have strong demonstration effects of modern retail standards. The project is also likely to support backward linkages to local suppliers as a result of the Client’s strong local supplier base and its requirements in terms of quality and hygiene standards. Moreover, a transfer of technical and managerial skills (e.g. modern retail management) can be expected. In addition, the Transaction demonstrates the possibilities of financing development activities in the retail sector at a nascent stage. Idea d.o.o., a Serbian retailer, is a subsidiary of Agrokor, the leading producer and distributor of food and beverage products and one of the leading retailers in the South Eastern Europe. The Company managing multi-format retail and wholesale operations was founded in 1992 and acquired by Agrokor in 2005. Up to EUR 70 million long-term guaranteed corporate loan to Idea. The Loan will comprise: EUR 120 million This project was categorised C/1 and due diligence focussed on the Company's capacity and systems to manage environment, health, safety and labour issues in the development and operation of stores. The Company has formal procedures for the siting and construction of new stores to ensure that the site is fit for purpose and will meet the requirements of local planning regulations. The Company does not allow the use of any hazardous materials in the construction of its stores and employs best design practice in terms of, for example, energy efficiency. An assessment of environmental impacts is part of the permitting process although the extent of this assessment will depend on the size and location of the facility being constructed. Facilities currently or will meet national and applicable EU standards for environment. Stores are also built to meet all occupational and public health and safety requirements and stores have emergency evacuation plans for life and fire safety. Finally, the operations of the Company are governed by the very comprehensive environment, health and safety management systems developed and implemented by the Agrokor Group which have been reviewed and approved by the Bank in the context of other operations. None. Ivan Crnjac Executive Vice President for Strategy and M&A Agrokor dd tel: +385 1 4894 567 e-mail: ivan.crnjac@agrokor.hr Website: www.agrokor.hr