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Euroterm Corporate Loan

Armenia | Consumer Staples

Identification Code:: OP/06/0609
Total Operation Cost:: — EUR
Maturity:: 84 months
Operation Status:: BSTDB Approved Amount – Approval Date

3.000.000 EUR – 27 Apr 2007
: BSTDB Signed Amount – Signed Date

3.000.000 EUR – 06 Jun 2007
: Status:
Active
Description and Purpose of the Operation:: BSTDB provided a loan to CJSC Euroterm to be used for financing capital expenditures related to modernization of the company’s production and packaging equipment, investments in cultivation of fruits and vegetables, and working capital.
Countries of Operation:: Armenia (100,00%)
Financial Product:: Loans
Sector:: Consumer Staples
Domain:: Private
Borrower/Client:: CJSC Euroterm is one of the leading producers of fruit juice, fruit concentrates and canned fruits and vegetables in Armenia. The Company sells its products both domestically and to foreign customers under the brand name "Noyan". The Noyan brand name enjoys a strong recognition and popularity in the Republic of Armenia. Euroterm's food products occupy approximately 13% of the Armenian market. Apart from the fruit juice related products, Euroterm is also active in assembling and distributing heating systems for commercial and residential properties. The Company is one of four major players in the Armenian market for aforementioned products.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: This operation is expected to strengthen and expand Euroterm business and contribute to an increase in exports from Armenia. A part of the financing will be used for cultivating orchards in Armenia and have a positive effect on the agricultural sector. The operation is also expected to open new job opportunities.
Environmental Classification and Impact:: The Operations has been screened as B0 according to BSTDB environmental screening categories. The Borrower's production activities are in compliance with subject EH&S legislations in effect in the Republic of Armenia, as well as Russian Federation and partially the EU standards and norms. The air emissions generated by two boilers powered by natural gas comply with the approved emissions limits. Water use and wastewater generation are within the allowed limits. Solid wastes resulting from the production processes are collected and timely removed from the production site by contractors for further processing into animal feed. All the processes, equipment and staff hygiene, are strictly observed and monitored, which guarantee the products safety. All the refrigeration equipment is properly maintained, so that no emissions of potentially ozone-depleting substances could occur. The Loan Agreement requires the Borrower to: remain compliant at all times with applicable Armenian EH&S rules and regulations; and 2) report on annual basis on overall EH&S performance.
Operation Leader:: General Industries, Transport, Tourism 1
E-mail:: gitt1@bstdb.org