Project detail - FLOTTOTRADE LIMITED

FLOTTOTRADE LIMITED

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Who is our client

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.

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 we fund this project

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.

Environmental and social 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.

Region
Europe & Central Asia
Country
Ukraine
Sector
Agribusiness, Food & Water
Signing date
8/28/2020
Total FMO financing
USD 35.00 MLN
Fund
FMO
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+