EBRD provide EUR 30 m loan to Nectar and Fructal

The European Bank for Reconstruction and Development (EBRD) announced on Monday afternoon (December 1, 2014) that it approved a €30 million loan to Serbian company Nectar “to boost the competitiveness and operational efficiency”.

EBRD states that the funding will support Nectar and its Slovenian subsidiary Fructal as the company is developing origin-based labels for fresh fruit products under the EBRD/FAO Geographical Indication (GI) project.

Nectar, the regional market leader, will help champion the EBRD/FAO GI project by improving certification of raspberry from the Serbian Arilje region, it was stated in the announcement. Around 100 raspberry farmers are expected to obtain the certification under the project.

UN Organization for food and agriculture (FAO) also participates in the Geographical Indication project.

The EBRD loan is split in two tranches: €25 million to refinance the existing debt portfolio and uncommitted €5 million for future energy efficiency improvements and other capital expenditure. In addition, Serbian and Slovenian partner banks are also extending €35 million to Nectar and Fructal for debt restructuring; it was added in the EBRD announcement.