SVL Group

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Translated version of this PSD: Russian Senior loan of up to USD 20.1 million to finance part of the cost of three new-built double-hull sea-river tankers, to be acquired by SVL Group. The loan will support the Company’s efforts to build its own sea-river tanker fleet. The EBRD financing will be complemented by a parallel loan from ZAO Unicredit Moscow. The Project’s transition impact comes from the on-going fleet renewal in the Russian sea-river oil shipping segment where single-hull vessels need to be replaced by double-hull vessels to improve their environmental safety. The project vessels will comply with IMO regulations, and the SVL Group will also implement various measures to enhance the safety and environmental standards of its shipping operations. SVL Group, a group of companies with an established presence in oil products and chemicals trading and port operations in Russia. Senior Loan of up to USD 20.1 million. Up to USD 50.2 million. The proposed project has been categorised B. The acquisition of five new double hulled sea-river class tankers is associated with environmental and social impacts that can be identified and addressed through adequate mitigation measures. The due diligence also covered the operations, policies, procedures and management systems of Livonia Shipping (the “Fleet Manager”), which will carry out the operation and technical management of the Project Vessels. Moreover, given that the Project Vessels will be chartered to TNK-BP, the environmental, social, and health and safety provisions included in the charter arrangements and documentation were reviewed. The investigations showed that SVL is a serious and efficient operator practicing internationally acceptable environmental, health and safety (EHS) standards and its operations are overall in compliance with regulatory requirements, EU environmental standards and international (including IMO, MARPOL and SOLAS) standards of maritime safety and environment protection. Its EHS management system is certified under the International Safety Management (ISM) Code. The fleet manager has appropriate systems and controls in place to manage environmental, health and safety and labour risks. In addition, BP's strict EHS standards will be applied to the operation of the Project Vessels, as SVL has a contractual obligation to comply with all relevant environmental and maritime safety, OHS and labour requirements, standards and operational procedures of TNK-BP in their operations as well as their vetting standards. The implementation of IMO standards and BP's strict EHS rules would minimise the potential pollution risks associated with the use of the vessels for the transportation of oil products. The Project Vessels will be constructed at Kherson Shipyard, Ukraine, to specifications that comply with IMO and BP EHS requirements. SVL has committed to engaging an international company to supervise the building of the Project Vessels, including supervision of EHS practices at the shipyard. An Environmental and Social Action Plan (ESAP) has been developed to further improve the environmental and social performance of the Company in line with international best practice and to ensure it carries out the project in compliance with the EBRD PRs. The ESAP commits the Company amongst others to: appointing a qualified EHS Manager and additional staff as required; attaining ISO 14001 and OHSAS 18001 accreditation; carrying out Tanker Management Self Assessment 2 (TMSA2) Audit; maintaining compliance of all fleet with international maritime safety and environmental standards (including IMO MARPOL and SOLAS); developing a fleet renewal and disposal (scrapping) plan taking into consideration international regulations; implementing a GHG accounting and reporting system and implementing a programme to improve energy and GHG performance; developing and implementing a plan and checklist for STS (Ship to Ship ) transfers; developing and operating a third party and contractor EHS monitoring system; and developing and adopting a corporate stakeholder engagement plan including a grievance mechanism. The Company will provide the Bank with annual reports on its environmental and social performance, including updates on the implementation of the ESAP. The Bank will commission a completion audit and may also conduct monitoring visits, as required. None. SVL Group Mosfilmovskaya street, 28, Moscow, 119285 Russia Tel: +7(495) 995 55 55 Fax: +7(495) 995 55 56 Website: www.svlactiv.com/