Véolia Voda Equity Investment

complete

The proposed project is an equity investment for the Bank to subscribe to newly issued shares in the capital of Véolia Voda (the Company) representing a minority interest. The proceeds from subscription will be used by the Company to continue it expansion plans in Central and Eastern Europe (CEE), including Russian and Ukraine. The transaction will contribute to increased private sector participation through privatisation of publicly-owned entities and expansion of contracted-out services to the private sector. The expanded Company will demonstrate high standards of corporate business conduct in several national markets and foster the development of modern management, financial and operational skills in an expanding workforce across the region. The transaction will foster the entry of an international operator in the Russian and Ukrainian market where the private market is dominated by local operators. The Company, is wholly-owned subsidiary of Véolia Eau-Compagnie Générale des Eaux (the Sponsor), a wholly-owned subsidiary of Véolia Environnment and a leading provider of water and wastewater services for public authorities and industrial companies. The Sponsor’s group of companies currently serve more than 108 million people in 57 countries and operates more than 4,400 contracts. The project will consist of up to EUR 105 million. To be confirmed. Screened C/1. The Company has environmentally related objectives at its core as it is helping to improve the quality of drinking water and wastewater treatment through its operations. The environmental due diligence (“EDD”) is underway to assess the potential environmental issues associated with the Company's operations and assets. The EDD will also review current and proposed investment programmes to ascertain whether owners of the assets (municipalities) are prepared to achieve compliance with EU environmental standards in accordance with the time schedule stipulated by the EU Accession Agreements of their host countries. Following meetings with the Company's management and key experts, the Bank has assigned an external consultant to review the Company’s key operations and to prepare an Environmental Action Plan, as needed. This section will be updated after completion of the EDD. None. Eva Kucerova Tel. +420 222 321 648 E-mail: eva.kucerova@veoliavoda.cz