Project Sponsor: Yioula owns 99.51% of Drujba and 100% of Bucha through Yalos Overseas Limited (Yalos), a Cyprus based holding company Major Shareholders of the Project: Founded in 1947, Yioula is a privately-owned firm that is now the largest glass container producer in the Balkans. In total, Yioula ranks sixth in Europe in glass container production, with production facilities in Greece, Romania, Bulgaria, and Ukraine. It is 72.91% owned by the Voulgarakis family and 27.09% by the following three reputable Greek banks and investment funds: Global Capital Investors (17.72%), National Bank of Greece (5.96%), and EFG Eurobank-Ergasias (3.41%).

The estimated project cost is Euro 48.6 million, divided up as follows Drujba: The total project cost is estimated at Euro 17.2 million. The proposed IFC investment is an A Loan of Euro 8.6 million equivalent for IFC’s own account. Bucha: The total project cost is estimated at Euro 31.4 million. The proposed IFC investment is an A Loan of Euro 15.5 million equivalent for IFC’s own account.

32.50 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	32.50
Equity

* These investment figures are indicative

The project at Drujba is located at the company’s plant in Plovdiv, Bulgaria, which is situated about 130 km southeast of Sofia. The site has access to the main railway line and truck roads. The project at Bucha is located at the company’s plant 30 km outside Kiev. It also has railway and good road access.

The projects will increase output of quality glass containers and help strengthen upstream and downstream supply chains with respect to raw material procurement, product distribution and marketing, and financing in Bulgaria and Ukraine. Since Bulgaria’s total glass container production already exceeds total domestic demand, increased local production of high quality local containers from the project at Drujba will increase export revenues for the country. The project at Bucha will transform an inefficient, underutilized glass facility into a competitive supplier, facilitate efficient use of energy and raw materials, and help raise productivity levels in Ukraine. Yioula will transfer management expertise, technological know-how, advanced marketing and sales techniques, and a proven quality control system to Ukraine and help build expertise in the country. Improved availability of modern, lightweight glass containers will allow domestic bottlers to install modern high speed bottling machines and modern closures, improving the competitiveness of Ukrainian exports, and allowing domestic bottlers to compete more effectively with imported products, benefiting the country and consumers and economy as a whole.

IFC will support Drujba’s expansion and modernization to maintain its leading position as one of the most cost competitive glass container plants in the region. It will provide Bucha with appropriately priced, long-term funding, which is not readily available locally.

Key environmental and social issues associated with this project are:

- the companies’ management of environmental, health and safety performance in its operations; compliance with national and local permitting requirements;
- terms of employment and working conditions; - occupational health and safety;
- emissions to the environment, particularly to air;
- energy use and greenhouse gas emissions.

This is a Category B project according to IFC’s Environmental and Social Review Procedure because the project has limited potential adverse social and environmental impacts that are few in number, site-specific, largely reversible and may be readily mitigated. In fact, the project will reduce emissions to air below current levels, and at Bucha the project will reduce energy consumption despite an anticipated increase in production output.