Victoria’s shareholders consist of: (a) three Serbian businessmen (who are also the founders of the business) Mr. Zoran Mitoric, Mr. Milija Babovic and Mr. Stanko Popovic (22.5% each); (b) EBRD (21.4% share) and, (c) Apsara Limited (11%), a Cyprus domiciled holding company.

IFC’s financing will be directed to support the Group’s permanent working capital needs and replacing existing shorter term debt financing. IFC is considering an A loan investment up to €60 million for IFC’s own account which will structured as a corporate finance facility.

74.13 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	74.13
Equity

* These investment figures are indicative

The Group is headquartered in Belgrade, Serbia. IFC’s investment would support the Group’s agriculture-related operations concentrated in the northern Serbian province of Vojvodina. The Group owns and operates two oilseed processing plants in Becej and Sid; a fertilizers production facility and a port at Backa Palanka.

The development impact of the Project is expected to include:
(i) Strengthening of agribusiness linkages and support to farmers: given the strong linkages of Victoria Group with farmers, provision of longer term permanent working capital will help ensure stable access of pre-harvest financing to farmers;
(ii) Job preservation: the Group employs about 1,800 people across its operation and collaborates with about 400 partners which in turn supply the Group from over 25,000 farmers;
(iii) Increase tax revenues: IFC''s investment will contribute to the growth of government revenues from taxation; and
(iv) Addressing food security concerns: IFC''s investment will contribute to food security and in meeting the challenges of increasing demand and food crisis.

IFC''s expected additionality includes: (i) Crisis response and countercyclical support: In light of the fluid economic situation in Serbia in the context of the Eurozone crisis, the local banking sector has cut liquidity on the domestic market. Through the Project, IFC is stepping up its presence on the local market, helping to restore confidence and increase investment in Serbia;
(ii) Provision of long-term financing: Provide long-term financing otherwise not readily available on the market; and
(iii) Diversified funding base: At a time of financial strain for local banks, IFC is starting its relationship with Victoria, a new partner which will benefit from a further diversified funding-base as a result of IFC''s presence.

This investment is classified as a Category B project in accordance with IFC’s Policy on Environmental and Social Sustainability. Based on information reviewed by IFC, this investment will have limited adverse E&S impacts that are few in number, are generally site specific, largely reversible and readily addressed through mitigation measures

The main environmental and social (E&S) issues include the ongoing management of E&S impacts associated with the production plants and how the Group is planning on developing its corporate E&S management program to better coordinate this activity and promote performance improvements. The movement of commodities and products (and their impact upon matters of resource efficiency and pollution prevention), completing already begun upgrades to pollution control equipment, completing already started enhancements to the Group-level management of Human Resources and ensuring OHS of those engaged in industrial operations is provided for through adequate systems and resources will also be important. While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards: PS1: Assessment and Management of Environmental and Social Risks and Impacts; PS2: Labor and Working Conditions; PS3: Resource Efficiency and Pollution Prevention; PS4: Community Health, Safety and Security, and; PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.