FLOTTOTRADE LIMITED
Status: Approved investmentWhy disclosure?
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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?
Flottotrade LLC (“Client”), a holding company incorporated in Cyprus, is ultimately owned by Wilmar International Limited, Delta Exports and Pinnama Holdings. Client was used to acquire PJSC Chumak (“Chumak”) in Ukraine.
What is our funding objective?
FMO will provide up to USD 35 million in long term financing to the Client. The funding will be used to finance a part of the total acquisition costs for Chumak, a top fast-moving consumer goods producer in the south of Ukraine.
Why do we fund this investment?
The acquisition will potentially help to unlock Chumak’s full potential in the domestic market by increasing Chumak’s market share in Ukraine and help to expand Chumak’s distribution to foreign markets, thereby generating more local tax revenues and jobs in an area with high unemployment rates.
What is the Environmental and Social categorization rationale?
E&S Category is B+. IFC PS 1-4 are relevant for the acquisition project. IFC PS 6 is relevant for contextual risks in the client’s supply chain. Mitigants include respective covenants and an E&S Action Plan focusing on improvements of E&S Management Systems of Chumak. IFC PS 5, 7 and 8 are not applied as no land acquisition, indigenous people and cultural sites are involved in the acquisition. The E&S Rationale and category are determined solely by FMO in accordance with FMO’s procedures and guidelines.
More investments
| Date | Total FMO financing |
|---|---|
| 6/23/2022 | EUR 0.05 MLN |
- Region
- Europe & Central Asia
- Country
- Ukraine
- Sector
- Agribusiness, Food & Forestry
- Publication date
- 7/7/2020
- Effective date
- 8/28/2020
- Total FMO financing
- USD 35.00 MLN
- Funding
- FMO NV
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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+