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DFF stands for Baby Food Factory

Project Description

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Provision of a up to EUR 24.4 million long-term loan to Fabrika Decje Hrane d.o.o. (the "Company") for financing of its capital investments, working capital needs and putting in place an appropriate financing structure which will support future growth and development. The financing will consist of EUR 14.4m committed tranche and EUR 10m uncommitted tranche.

Project Objectives

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Nelt Group

The main objective of the Project is to support the Company's investment program and balance sheet strength.

Transition Impact

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ETI score: 58

The primary transition impact quality is "Competitive", as the Project will support operational changes leading to operational turnaround and competitiveness improvements.

The secondary transition impact quality is "Inclusive", as the Bank's loan will support increased share of women in the Group's traditional/organized trade, logistics and IT sectors.

Client Information

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Food Unwrapped


Fabrika Decje Hrane d.o.o. is a limited liability company established in Serbia and one of the leading baby food producers.

The Company is part of Nelt Group (the "Group"), one of the largest FMCG groups operating in the Western Balkans and Sub-Saharan regions.

EBRD Finance Summary

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푸드킹덤 Food Kingdom

EUR 24,400,000.00

Total Project Cost

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EUR 24,400,000.00


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The Bank's additionality stems from tailored financing structure, risk mitigation and standard setting.

Environmental and Social Summary

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Categorised B (ESP 2019).  Environmental and social impacts associated with the investments into WC and CAPEX of baby food producer are site-specific, typical for the sector, and can be effectively addressed via the implementation of good Environmental and Social management practices and stewardship.

ESDD for the Project was undertaken in house by means of review of the Environmental and Social Questionnaire, additional E&S documents and followed up by the Q&A. This included, inter alia, review of the company's Human Resources management policies and procedures, environmental and H&S documentation. Key suppliers' list has also been reviewed to exclude potential risks of FL/CL. All suppliers were confirmed to originate from Serbia/EU. The Company complies with ISO 9001, FSSC 22000, HACCP, HALAL and ORGANIC standards requirements. The raw materials used by the Company are approved for baby food production under the strictest European standards. In 2023, the Company joined the UN Global Compact initiative and is committed to implement principles of labour, human rights and environmental protection and provide annual sustainability reporting. The Company adopted a Code of Conduct which regulates various rights, obligations, and responsibilities of employees, including conflict of interest, prohibition of bribery, etc., as well as Whistleblowing policy. The Company is working on ISO 14001 certification and implementation of ESG. It has been established that the Company is generally compliant with the national E&S legislation, has implemented a functional EHS management system, has dedicated E&S staff in place and possesses technical and institutional capacity to deliver the Project in line with EBRD ESP. ESDD hasn't identified major gaps that would warrant development of the targeted Environmental and Social Action Plan (ESAP), hence the requirement to comply with relevant Bank's PR is included into Loan agreement. The Bank will monitor Project implementation via the review of the Annual Environmental and Social Reports.

Technical Cooperation and Grant Financing

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TC funded by SSF to support digitalization and automation of the processes across the Group.

Company Contact Information

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Arepas for Dinner

Jugoslav Jovanovic
[email protected]

PSD last updated

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HealthNut Nutrition

19 Oct 2023

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: [email protected]

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

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.

Integrity and Compliance

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 [email protected]. 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.

Access to Information Policy (AIP)

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.

Independent Project Accountability Mechanism (IPAM)

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 [email protected] to get guidance and more information on IPAM and how to submit a request.


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