Project detail - MK GROUP D.O.O. BEOGRAD

MK GROUP D.O.O. BEOGRAD

Status: Completed investment
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Disclaimer

The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

MK Group d.o.o. (MKG) is a holding company domiciled in Serbia, which aggregates majority of business activities. The Group is the second largest agribusiness conglomerate in Serbia and the number one sugar producer in the country with a 50% market share). The Group comprises four main divisions (% revenues): agriculture (5%), trade (40%), meat (10%) and sugar (38%). Sugar production is a vertically integrated business controlled by the Group, which also cultivates corn, soya, sunflower, wheat and rapeseed on 23,000 ha in Serbia (the rest is bought from approximately 21,000 farmers). On average the trading activities contribute around 40% to the Group's revenues with an annual turnover of 1 million tons.

What is our funding objective?

FMO will invest a EUR15 mln in a senior secured loan, alongside DEG (EUR20 mln) and OeEB (EUR15 mln). The investment will fund the construction of new storage facilities (silos and warehouses) and irrigation systems, the modernization of existing facilities, efficient sugar extraction machineries, a steam dryer for pellets to substitute heavy oil and working capital.

Why do we fund this investment?

This investment will contribute to food security through improved and expanded storage facilities, improved extraction technologies and irrigation systems.

Website customer/investment
http://www.mkgroup.rs
Region
Europe & Central Asia
Country
Serbia
Sector
Agribusiness, Food & Water
Effective date
9/27/2013
End date
3/7/2018
Total FMO financing
EUR 15.00 MLN
Funding
FMO NV
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B+