<div><h2>Project Description</h2><p></p><p>An equity investment of EUR 10.3 million in Starlight II SARL, a parent company of Pfleiderer Polska z o.o. ("Pfleiderer", the "Company"), a leading Polish manufacturer of wood-based panels. The Bank's funds, together with additional equity contributions from other shareholders, will enable the implementation of a comprehensive value creation plan at the Company and further strengthen its competitive positioning.</p><p></p><h2>Project Objectives</h2><p></p><p>The project is expected to transform the Company into a highly attractive asset and will further support the private equity ecosystem in Poland during a period of reduced liquidity and increased international investor risk aversion, thus contributing to the resilience of capital markets.</p><p></p><h2>Transition Impact</h2><p>ETI score: 65</p><p style="margin-top: -13px;"></p><p>The Project's Transition impact derives from the Resilient and Completive transition qualities. Under Resilient, Bank's co-investment with Innova will both support Company's growth prospects and improve the visibility of PE investments in Poland and the region. Under Competitive, the Company will benefit from investors' operational and sustainability expertise reflected in the value creation plan.</p><p></p><h2>Client Information</h2><p>STARLIGHT II</p><p style="margin-top: -13px;"></p><p>Starlight II SARL</p><p>Starlight II SARL is a Luxembourg-domiciled financial entity, through which financial investors (including the EBRD and Innova/7) together with the family office of Bogdan and Elzbieta Kaczmarek will hold their interests in Pfleiderer Polska sp. z o.o., an established supplier of a wide range of particleboard-based products to industrial customers and wholesalers in Poland and abroad.</p><p></p><h2>EBRD Finance Summary</h2><p style="margin-top: -13px;"></p><p>An equity investment of EUR 10.3 million in Starlight II SARL, a parent company of Pfleiderer Polska z o.o., a leading Polish manufacturer of wood-based panels. The Bank's funds, together with additional equity contributions from other shareholders, will enable the implementation of a comprehensive value creation plan at the Company.</p><p></p><h2>Additionality</h2><p></p><p>The EBRD bridges the financing gap in the Project's financing structure and will drive the implementation of the ESAP including a commitment to develop and implement a Low Carbon Transition Plan reducing the use fossil fuels and carbon emissions. </p><p></p><h2>Environmental and Social Summary</h2><p></p><p>Categorised B (ESP 2019). Acquiring an indirect shareholding within the Company, a producer of wood-based products for use in furniture, fittings and construction is considered to be associated with site-specific impacts which are readily addressed by mitigation measures. Environmental and Social Due Diligence (ESDD) has been carried out internally by ESD consisting of a review of an independent due diligence report carried out of the Company's three production sites (which largely focussed on legal compliance and material liabilities), the Company's annual public sustainability report and the Company's response to specific questions on E&amp;S issues.</p><p>The Company operates in accordance with EU-Best Available Techniques, implements ISO certified management systems, and publishes an annual sustainability report covering the 3 sites with associated objectives and targets on environmental performance. They also have future investment plans which include further reduction of energy usage and increase the proportion of recycled wood in their products.</p><p>As part of the ESDD, key environmental and social impacts of the Company's operations have been assessed and the Project is structured in compliance with the PRs through the implementation of the Environmental and Social Action Plan (ESAP). The Bank is familiar with the wood product production sector and the typical E&amp;S impacts and risks are considered to be low-medium and effectively managed using standard processes and mitigations. ESAP will require a follow-on audit, undertaken by a third-party, of the Company's compliance with the PRs and the development and implementation of a gap closure plan, to be agreed with EBRD.</p><p>The ESAP also requires the Company to operate in accordance with the PRs, maintain the existing E&amp;S management systems and ISO certifications and appoint of a corporate E&amp;S manager to ensure its implementation. Developing and implementing a decarbonisation plan to ensure the phase out of coal, which is used, together with biomass for thermal energy generation for the production process at two of the plants; undertaking a sustainability assessment of groundwater abstraction and wood consumption volumes and setting targets to further reduce this resource usage. The Company currently sources a proportion of its biomass from Forest Stewardship Council certified forests and will be required to develop a procedure for sustainable biomass procurement which will include that biomass for energy meets the sustainability requirements in the Renewable Energy Directive II and that preference continues to be given to sourcing biomass used in production is sourced from suppliers certified to a recognised international standard for sustainable forest management.</p><p>The Company will also be required to continue to publish annual sustainability reports and report to EBRD on a regular basis on E&amp;S performance including ESAP implementation.</p><p></p><h2>Technical Cooperation and Grant Financing</h2><p></p><p>None</p><p></p><h2>Company Contact Information</h2><p>Jakub Wolodko<br/>www.pfleiderer.pl<br/>ul. Strzegomska 42 ABMillennium Tower IV53-611 Wroclaw<br/></p><h2>PSD last updated</h2><p>16 Apr 2024</p><div id="docsLinks" style="display:none"><h2>Related material</h2><ul class="relMat"></ul></div><script type="text/javascript">						var projFinderService = '/project-finder-json?1=1';						var projectId = "55047";					</script><h2>	Understanding Transition</h2><p>	Further information regarding the EBRD’s approach to measuring transition impact is available <a href="https://www.ebrd.com/what-we-do/economic-research-and-data/transition-impact.html">here</a>.</p><h2>	Business opportunities</h2><p>	For business opportunities or procurement, contact the client company.</p><p>	For business opportunities with EBRD (not related to procurement) contact:</p><p>	Tel: +44 20 7338 7168<br/>	Email: <a href="mailto:projectenquiries@ebrd.com">projectenquiries@ebrd.com</a></p><p>	For state-sector projects, visit <a href="https://www.ebrd.com/pages/workingwithus/procurement.shtml">EBRD Procurement</a>:<br/><br/>	Tel: +44 20 7338 6794<br/>	Email: <a href="mailto:procurement@ebrd.com">procurement@ebrd.com</a></p><h2>	General enquiries</h2><p>	Specific enquiries can be made using the <a href="https://www.ebrd.com/eform/information-request">EBRD Enquiries form</a>.</p><h2>	Environmental and Social Policy (ESP)</h2><p>	The <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">ESP</a> and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.</p><p>	More information on the EBRD’s practices in this regard is set out in the <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">ESP</a>.</p><h2>	Integrity and Compliance</h2><p>	The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.</p><p>	OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to <a href="mailto:compliance@ebrd.com">compliance@ebrd.com</a>. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.</p><h2>	Access to Information Policy (AIP)</h2><p>	The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the <a href="https://www.ebrd.com/what-we-do/strategies-and-policies/public-information-policy.html">Access to Information Policy</a> page to find out what information is available from the EBRD website.</p><p>	Specific requests for information can be made using the <a href="https://www.ebrd.com/eform/information-request">EBRD Enquiries form</a>.</p><h2>	Independent Project Accountability Mechanism (IPAM)</h2><p>	If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).</p><p>	IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">Environmental and Social Policy</a> or Project-specific provisions of its <a href="https://www.ebrd.com/what-we-do/strategies-and-policies/access-to-information-policy.html">Access to Information Policy</a>; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.</p><p>	Please visit the <a href="https://www.ebrd.com/project-finance/independent-project-accountability-mechanism.html">Independent Project Accountability Mechanism webpage</a> to find out more about IPAM and its mandate; how to <a href="https://www.ebrd.com/eform/IPAM/Request_form">submit a Request</a> for review; or contact IPAM  via email <a href="mailto:ipam@ebrd.com">ipam@ebrd.com</a> to get guidance and more information on IPAM and how to submit a request.</p><p>	 </p></div>

DFF - Pfleiderer Polska

An equity investment of EUR 10.3 million in Starlight II SARL, a parent company of Pfleiderer Polska z o.o. Pfleiderer, the Company, a leading Polish manufacturer of wood-based panels. The Bank's funds, together with additional equity contributions from other shareholders, will enable the implementation of a comprehensive value creation plan at the Company and further strengthen its competitive positioning.The project is expected to transform the Company into a highly attractive asset and will further support the private equity ecosystem in Poland during a period of reduced liquidity and increased international investor risk aversion, thus contributing to the resilience of capital markets.ETI score: 65The Project's Transition impact derives from the Resilient and Completive transition qualities. Under Resilient, Bank's co-investment with Innova will both support Company's growth prospects and improve the visibility of PE investments in Poland and the region. Under Competitive, the Company will benefit from investors' operational and sustainability expertise reflected in the value creation plan.STARLIGHT IIStarlight II SARLStarlight II SARL is a Luxembourg-domiciled financial entity, through which financial investors including the EBRD and Innova7 together with the family office of Bogdan and Elzbieta Kaczmarek will hold their interests in Pfleiderer Polska sp. z o.o., an established supplier of a wide range of particleboard-based products to industrial customers and wholesalers in Poland and abroad.An equity investment of EUR 10.3 million in Starlight II SARL, a parent company of Pfleiderer Polska z o.o., a leading Polish manufacturer of wood-based panels. The Bank's funds, together with additional equity contributions from other shareholders, will enable the implementation of a comprehensive value creation plan at the Company.The EBRD bridges the financing gap in the Project's financing structure and will drive the implementation of the ESAP including a commitment to develop and implement a Low Carbon Transition Plan reducing the use fossil fuels and carbon emissions. Categorised B ESP 2019. Acquiring an indirect shareholding within the Company, a producer of wood-based products for use in furniture, fittings and construction is considered to be associated with site-specific impacts which are readily addressed by mitigation measures. Environmental and Social Due Diligence ESDD has been carried out internally by ESD consisting of a review of an independent due diligence report carried out of the Company's three production sites which largely focussed on legal compliance and material liabilities, the Company's annual public sustainability report and the Company's response to specific questions on ES issues.The Company operates in accordance with EU-Best Available Techniques, implements ISO certified management systems, and publishes an annual sustainability report covering the 3 sites with associated objectives and targets on environmental performance. They also have future investment plans which include further reduction of energy usage and increase the proportion of recycled wood in their products.As part of the ESDD, key environmental and social impacts of the Company's operations have been assessed and the Project is structured in compliance with the PRs through the implementation of the Environmental and Social Action Plan ESAP. The Bank is familiar with the wood product production sector and the typical ES impacts and risks are considered to be low-medium and effectively managed using standard processes and mitigations. ESAP will require a follow-on audit, undertaken by a third-party, of the Company's compliance with the PRs and the development and implementation of a gap closure plan, to be agreed with EBRD.The ESAP also requires the Company to operate in accordance with the PRs, maintain the existing ES management systems and ISO certifications and appoint of a corporate ES manager to ensure its implementation. Developing and implementing a decarbonisation plan to ensure the phase out of coal, which is used, together with biomass for thermal energy generation for the production process at two of the plants; undertaking a sustainability assessment of groundwater abstraction and wood consumption volumes and setting targets to further reduce this resource usage. The Company currently sources a proportion of its biomass from Forest Stewardship Council certified forests and will be required to develop a procedure for sustainable biomass procurement which will include that biomass for energy meets the sustainability requirements in the Renewable Energy Directive II and that preference continues to be given to sourcing biomass used in production is sourced from suppliers certified to a recognised international standard for sustainable forest management.The Company will also be required to continue to publish annual sustainability reports and report to EBRD on a regular basis on ES performance including ESAP implementation.NoneJakub Wolodkowww.pfleiderer.plul. Strzegomska 42 ABMillennium Tower IV53-611 Wroclaw16 Apr 2024Further information regarding the EBRD's approach to measuring transition impact is available here.For business opportunities or procurement, contact the client company.For business opportunities with EBRD not related to procurement contact:Tel: +44 20 7338 7168Email: projectenquiriesebrd.comFor state-sector projects, visit EBRD Procurement:Tel: +44 20 7338 6794Email: procurementebrd.comSpecific enquiries can be made using the EBRD Enquiries form.The ESP and the associated Performance Requirements PRs set out the ways in which the EBRD implements its commitment to promoting "environmentally sound and sustainable development".  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders' concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project's environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.More information on the EBRD's practices in this regard is set out in the ESP.The EBRD's Office of the Chief Compliance Officer OCCO promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to complianceebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.Specific requests for information can be made using the EBRD Enquiries form.If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful e.g. through the Client's Project-level grievance mechanism or through direct engagement with Bank management, individuals and organisations may seek to address their concerns through the EBRD's Independent Project Accountability Mechanism IPAM.IPAM independently reviews Project issues that are believed to have caused or to be likely to cause harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipamebrd.com to get guidance and more information on IPAM and how to submit a request.

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