Nectar Regional

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The EBRD is considering providing a financing of up to EUR 30 million to Nectar d.o.o. (‘Nectar’), one of the leading juice and soft drinks producers in the Western Balkans. The loan would be split into two tranches: (i) EUR 25 million committed tranche for the refinancing of the existing debt portfolio and (ii) EUR 5 million uncommitted tranche for investments in energy efficiency and capex. The total financing will amount to EUR 75 million and will be used to restructure the current loan portfolio of Nectar with a newly structured long-term financing coupled with a mid-term working capital facility provided by parallel lenders. Through the proposed project, the Bank aims to support Nectar in implementing additional improvements in its corporate governance and business conduct, which should serve as a strong example for other regional companies in the areas of sustainable growth and energy management given Nectar’s size and prominence. Additionally, Nectar will participate in the EBRD/FAO project for the development of origin based labels in the horticultural sector in Serbia (“Geographical Indications”). The proposed financing will ensure the stability of Nectar’s operations and its support of geographical indications concept in the fruit segment. Nectar will take the role in promotion, improved certification and creation of geographical identification labels in the horticultural sector in Central and South Serbia. Nectar is the leading juice drinks company in the region of former Yugoslavia with a full spectrum product portfolio and a strong brand. Since 2011 Nectar is also the owner of the Slovenian producer Fructal. Loan of up to EUR 30 million split in two tranches: (i) EUR 25 million committed tranche for the refinancing of the existing debt portfolio and (ii) EUR 5 million uncommitted tranche for investments in energy efficiency and capex. The loan is part of a total EUR 75 million financing package, of which the remaining EUR 45 million is to be provided by local commercial banks as parallel lenders: (i) EUR 35 million for refinancing and (ii) EUR 10 million mid-term revolving working capital facility. EUR 75 million. The project has been categorised B in accordance with the Bank’s 2008 Environmental and Social Policy. The environmental and/or social impacts associated with the project are not expected to result in significant environmental and social impacts and E&S potential risks can be readily identified and addressed through mitigation measures. The environmental and social due diligence (ESDD) which is currently being undertaken by independent consultants include a corporate review of the company’s environmental, social and health and safety (ESHS) management systems, an ESHS audit of selected sites, revision of existing Stakeholder Engagement and Environmental and Social Action Plans as necessary and development of a brief non-technical summary. This PSD will be updated once the ESDD is completed. None. Valentina Draskic Chief Financial Officer E-mail: valentina.draskic@nectar.rs Phone: + 381 21 630 24 70