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| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. |
Summary of Project Information (SPI) |
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| Project number | 11279 |
| Project name | Viktor Lenac d.d. |
| Country | Croatia |
| Sector | Industrial & Consumer Products |
| Department | Global Manufacturing & Services |
| Company name | Brodogradiliste |
| Environmental category | B |
| Date SPI disclosed | May 29, 2002 |
| Projected board date | June 28, 2002 |
| Status | Completed |
| Previous Events | Approved: November 23, 2003 |
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| Project sponsor and major shareholders of project company |
| Viktor Lenac (VL or the company) has a diversified shareholder base. A major shareholder is Mr. Zacchello, an industrialist based in Venice, who is President of the Venetian chapter of Confindustria, the Italian association of industries (33.5%). Senior management holds about 11.4%. Other shareholders include IFC (17.7%), DEG (9.4%), and Raiffeisenbank (4.3%). The remaining 23.7% of the shares are owned by over 900 institutions and private individuals. Ordinary shares (about 84% of all voting shares) are listed on Zagreb Stock Exchange. |
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| Total project cost and proposed IFC investment |
| The total project cost is estimated at US$63 million. IFC is considering providing financing in the form of up to US$1 million in equity, up to US$5 million in convertible subordinated bonds, up to US$5.5 million in A Loan, and US$10 million in syndicated B-Loans. |
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| Location of project and description of site |
| Viktor Lenac, a marine engineering company, established in 1896 as a repair shipyard, is located in Matrinsica Bay, on the Adriatic coast in town of Rijeka, Croatia. |
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| Description of company and purpose of project |
Viktor Lenac is the only one of Croatia's major six shipyards which is privately owned and managed, and is the only heavy industrial company listed on Tier One of the Zagreb Stock Exchange. The company was privatized in 1993. In the ensuing eight years, VL's management has transformed it into a productive, profit-making enterprise, lowering inventories and utilities costs, and upgrading equipment. The company now regularly and successfully competes with the best Western European shipyards, with over three-quarters of its business coming from non-Croatian entities. VL is the only shipyard in the Adriatic, the Mediterranean and the Black Sea with both ISO 9002 (quality) and ISO 14001 (environmental) certification.
The purpose of the project is to enable VL (i) to equip itself in order to capture market opportunities in the offshore oil and gas industry and in large vessel conversions and repairs, (ii) to achieve greater efficiency and productivity, and (iii) to diversify into building of small and specialized ships. The project therefore is an important element in the company's long-term strategy to develop into a major international supplier of engineering and construction services for the marine sector. In addition to safeguarding the existing employees of VL, the venture will support a number of small companies VL is outsourcing to and significantly increase foreign exchange earnings of the company and the region. |
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| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects, because a limited number of specific environmental and/or social impacts may result which, can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
To view the environmental documents for this project, click here
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| Location of environmental documents in locally affected community |
| Environmental Review Summary has been announced on May 14, 2002 in a local paper Novi List and made available at the premises of Viktor Lenac for the review by local community and other interested parties. |
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| To contact the project company, please write to: |
| Mr. Ognjen Antunac, Deputy Managing Director. Phone: (385-51) 405-400 Fax: (385-51) 217-175 |
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