OREANDA-NEWS. December 03, 2014. A EUR30 million loan by the European Bank for Reconstruction and Development (EBRD) will boost the competitiveness and operational efficiency improvements of Nectar, the leading juice producer in the Western Balkans.
 
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. Around 100 raspberry farmers are expected to obtain the certification under the project.
 
Furthermore, the financing will help implement and promote GI examples that can be replicated not only in the fruit segment but in any others which will result in improved differentiation of local products.
 
Matteo Patrone, EBRD Director for Serbia, said: “We are pleased with the opportunity to extend our support to Nectar and deepen our cooperation with a longstanding client. The EBRD is proud to have supported Nectar since 2007 and helped it become a regional champion. The project fits well with the EBRD’s strategy for Serbia, which includes the further strengthening of the private sector’s competitiveness and structural improvements in the agribusiness sector.”
 
“EBRD and FAO initiated the GI project to help local producers to become more competitive and achieve greater market access with their unique products. The project wants to demonstrate the value of quality which is rewarded by better prices and higher revenues for producers”, said Gilles Mettetal, EBRD Director for Agribusiness.
 
Slobodan Radun, the founder and president of Nectar, added: “We are proud to have the EBRD as our strong long-term quality partner. It helps us to promote our products and bring them to new markets as an established brand.”
 
The EBRD loan is split in two tranches: EUR 25 million to refinance the existing debt portfolio and uncommitted EUR 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.
 
The FAO/EBRD project is in its early stages and is part of a larger initiative, enjoying donor financing from Luxembourg. This is the second fruit product from Serbia participating in the GI project, following the success of improved certification of the Serbian sour cherry.
 
Since the start of its operations in Serbia, the EBRD has invested more than EUR 3.8 billion in 182 projects. The Bank invests in the financial sector, industry, commerce, agribusiness, energy and infrastructure.