EBRD enables baby food producer in Serbia to expand its operations

The European Bank for Reconstruction and Development (EBRD) is lending €24.04 million to Fabrika Decje Hrane d.o.o. (“Baby Food Factory”) in Serbia.

The company is one of the largest manufacturers of baby food in the country and is part of Nelt Group, a leading group in the Western Balkans in the field of logistics and distribution.

The EBRD’s investment will be used to finance capital expenditure, enabling the company to increase its capacity, introduce new products and improve the efficiency of its operations. The loan will also enhance the company’s financing structure, preparing the manufacturer for ramping up its operations.

As part of the investment, Fabrika Decje Hrane also commits to greater gender inclusion by pledging to increase the percentage of women employed in logistics, distribution and information technology. These essential areas of the business employ a majority of the firm’s total workforce.

– We are happy that the EBRD will assist us in achieving our vision by supporting the future growth of Fabrika Decje Hrane, one of Nelt Group’s most important strategic projects – said CEO of Nelt Group Miloš Jelić.

– Our financial arrangement will facilitate further expansion and diversification of Fabrika Decje Hrane brands to all current Nelt markets (including sub-Saharan Africa) and beyond. This step marks the start of long-term formal cooperation between Nelt Group and the EBRD on various projects – added Jelić.

EBRD Regional Head of Agribusiness Miljan Ždrale commented:

– This is the first project with Nelt Group, enabling us to formalise ties after years of building a relationship between the Bank and Nelt’s founders and senior management. This financing will enable the client to grow and diversify its operations across markets in central and south-eastern Europe. It also represents the first step towards a long-term partnership with Nelt. The group is present in a variety of businesses and geographies, among which the Western Balkans and sub-Saharan Africa are key for Nelt.

The EBRD is a leading institutional investor in Serbia and has invested more than €9 billion in the country to date through 355 projects, most of which have supported the private sector. The Bank’s focus in Serbia is on supporting private-sector competitiveness, green energy transition and sustainable infrastructure.