main navigation menu miga logo
World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

Subscribe to Our Monthly Newsletter
x

About Dropdown Description

World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Our Impact Dropdown Description

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

Our Products Dropdown Description

Young woman bending down to tending to her outside chores

Explore different types of political risk insurance guarantees provided to investors and lenders.

Projects Dropdown Descriptions

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Russian Federation

OOO SUNTY

$30.2 million
Manufacturing
Project Brief
Not Active
twitteremail

MIGA has issued a guarantee of $30.2 million to Campestres Holdings Limited (TOHL) of Cyprus, covering its investment to acquire partial ownership of Russian packaged coffee and tea product manufacturer, OOO Sunty. The coverage is for a period of up to 20 years, against the risks of transfer restriction, expropriation, and war and civil disturbance. MIGA’s guarantee covers Campestres’ investments of equity, goodwill, future retained earnings, and dividend entitlement in OOO Sunty.[1]

Campestres will be effecting its investment in OOO Sunty in conjunction with the European Bank for Reconstruction and Development (EBRD), and the two will invest an estimated $26.3 million in a combined 51 percent ownership in OOO Sunty, with the deal involving a working capital investment for OOO Sunty, transfer of trademark ownership in Commonwealth of Independent States and Europe, long-term lease agreements for production facilities and warehouses, and additional improvement measures for infrastructure and environmental protection.  A $3 million portion will be applied to the purchase of additional equipment and computer system enhancements to OOO Sunty’s operations.

Currently OOO Sunty – via its predecessor entity, “Grand Group Russia” – has estimated market shares of 6 percent and 5 percent, respectively, of the total Russian market for packaged coffee and tea products, by volume

Expected developmental impacts of the project include: increased competition in the Russian packaged coffee and tea product business segment, via introduction of global Tata Group coffee and tea brands improved production processes and product quality by applying Tata Group’s expertise in the areas of production efficiency and tea buying and tasting; and introduction of global Tata Group human resource best practices.

MIGA’s guarantee for this investment is consistent with the first pillar of the World Bank Group’s Country Partnership Strategy for Russia which focuses on sustaining rapid economic growth.

 

[1] The guarantee was canceeled on September 03, 2016.

twitteremail