Kalina II

complete

The EBRD is considering a USD 40 mn 5 year loan to OAO Concern Kalina structured in two tranches of USD 30 mn and USD 10 mn. The financing will be aimed at securing sustainable development of the client’s operations in times of the uncertainty in the credit markets and will be used for optimising the client’s debt structure and achieve balance sheet consolidation as well as to cover working capital and other operational needs to sustain the market position and penetrate new regional segments in Russia. The proposed transaction is aimed at supporting a market player which drives improvements in market functioning, competition, corporate governance and transparency standards and provides benchmarks for global best practice in operations and customer orientation. The Bank’s support to Kalina in the current crisis environment will reinforce transition achievements of earlier transactions. The proposed transaction will support introduction of new ERP system in the company to further streamline and improve production operations, distribution and sales management. It will also promote the company’s work in the regional markets through the introduction of modern trade techniques and improve the availability of quality products for consumers in the regions. OAO Concern Kalina, Russia’s leading cosmetics producer and a public company. The Bank has successfully completed two projects with the client in the past. USD 30 million tranche out of USD 40 mn loan. USD 40 million. Screened B according to 2008 environmental and social policy. The proposed working capital loan will not result in capacity increase or significant changers to the existing operations. The due diligence confirmed that the Company's HR practices and EHS management procedures are in accordance with the EBRD's Performance Requirements. Provisions for Annual Environmental Reports, incident notification requirements and monitoring visits will be incorporated into the legal documents. None. Dmitry Argunov, Head of Corporate Finance Department OAO Concern Kalina тел. (343) 262-26-85, 262-09-86; факс (343) 365-83-00, 262-22-32; E-mail: cfininet@kalina.org