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Hayat Consumer Goods-Long Term Financing

Russia | Consumer Staples

Identification Code:: OP/20/0021
Total Operation Cost:: 134.461.588 EUR
Maturity:: 84 months
Operation Status:: BSTDB Approved Amount – Approval Date

75.000.000 EUR – 17 Nov 2020
: BSTDB Signed Amount – Signed Date

75.000.000 EUR – 20 May 2021
: Status:
Completed
Description and Purpose of the Operation:: Long-term Senior Debt Facility to finance Hayat’s capital expenditures regarding the construction of a new tissue and towel paper production facility in Kaluga, Russia
Countries of Operation:: Russia (100,00%)
Financial Product:: Loans
Sector:: Consumer Staples
Domain:: Private
Borrower/Client:: Hayat Consumer Goods Kaluga, Russia
Co-Financers/Participants:: EKN and SACE as ECAs; Local Russian commercial bank(s)
Guarantors/Sponsors:: Hayat Kimya Sanayi A.S. (Turkey), Hayat Marketing (Russia) and Hayat, Kimya LLC Alabuga (Russia)
Developmental and Regional Cooperation Impact:: BSTDB participation in the operation would help bring positive social and economic development impact. It will provide the Black Sea market with high quality products at affordable prices for the consumers and will create additional employment in Russia. Along with meeting increased domestic demand, the project aims to increase export capacity of the company and thereby the country. The project meets regional cooperation criteria, given that Turkish based company, which has operations in Turkey, and distribution bases in Bulgaria and Romania will invest in production facilities in Russia. Additionally, the company will export some of its products to other member countries.
Environmental Classification and Impact:: Construction and operation of new plants for production of paper tissues and towels is associated with limited environmental and social (E&S) risks and impacts that can be readily managed by applying good practices for the manufacturing industry. The main risks and impacts common for the sector relate to site issues, compliance, labor and working conditions, pollution prevention and abatement measures, fire safety, product safety, impacts on the local communities’ health, safety and security; and supply chain which is a critical issue in the industry that relies on products derived from natural wood, which needs to be sourced from well-managed forests with legally controlled loggings, and procured based on fair trade practices.
Operation Leader:: General Industries, Transport, Tourism 2
E-mail:: gitt2@bstdb.org