Vulic Law advised IFC on the largest green financing transaction for a Serbian company to date. Acting as legal counsel to IFC, Vulic Law guided a landmark deal where IFC extended a substantial loan to Drenik Nd, a major tissue paper producer in the Western Balkans. This significant investment, totaling 106 million euros, not only marks a milestone in Serbia’s economic landscape but also underscores IFC’s commitment to sustainable development in the region.
Vulic Law has played a pivotal role in facilitating the largest green financing transaction for a Serbian company to date. Acting as legal counsel to the International Finance Corporation (@IFC), Vulic Law provided expert guidance in a landmark deal that saw IFC extend a substantial loan to Drenik Nd, a major tissue paper producer and distributor in the Western Balkans with production plants in Serbia and Hungary.
The financing agreement, amounting to an impressive 106 million euros, represents a significant milestone in Serbia’s economic landscape. This substantial investment underscores IFC’s commitment to fostering sustainable development and promoting environmentally responsible practices within the region.
Financing provided by IFC serves multiple purposes aimed at bolstering Drenik’s operations and sustainability efforts. It supports the development of the largest captive biomass power plant in Serbia. This initiative not only ensures a stable operation and energy supply for Drenik’s manufacturing facility but also contributes to a substantial reduction in carbon dioxide emissions, aligning with global efforts to combat climate change.
The successful completion of this transaction underscores Vulic Law’s expertise in navigating complex cross-border deals and its commitment to facilitating sustainable investments in the Serbian market. Milos Vulic, Partner at Vulic Law, expressed his satisfaction with the outcome, stating, “We are proud to have supported IFC in this landmark transaction, which not only demonstrates the confidence of international investors in Serbia’s business environment but also contributes to the country’s transition towards a more sustainable and resilient economy.”
The transaction involved collaboration with leading international law firms, including Gide (UK) and Wolf Theiss (Hungary), each providing legal counsel for their respective jurisdictions.
As Serbia continues to attract foreign investment and expand its presence on the global stage, initiatives like the IFC’s financing of Drenik Nd serve as a testament to the country’s potential for sustainable growth and development. With the support of experienced legal advisors like Vulic Law, Serbian companies are well-positioned to capitalize on emerging opportunities and contribute to the advancement of environmentally conscious practices in the region and beyond.