ARLA FOODS DAIRY RDI

Promoter – Financial Intermediary

ARLA FOODS AMBA,ARLA FOODS INGREDIENTS GROUP P/S

Location

• Denmark

Description

Financing of (i) research, development and innovation (RDI) activities to develop new and more sustainable food products and (ii) investments in a new innovation centre. The RDI activities and the innovation centre will be located in Denmark.

Additionality and Impact

The project supports the RDI programme of a dairy cooperative to build up long-term science competitiveness, while staying true to its sustainability strategy, inspired by the United Nations Sustainable Development Goals. It fulfils Horizon 2020 program challenge "Food Security" by providing solutions for more efficient food production. The project further aligns with Horizon 2020 "Food and Healthy Diet".

In line with EU and EIB policy objectives of competitive innovation, the project generates knowledge, environmental and health externalities that are not fully covered by sales revenues. The most important economic benefits of the project are related to sustainability and corporate social responsibility at the levels of sourcing, health and well-being of consumers and the wider community.

The EIB contribution is to offer a long loan tenor that is not typically available on the capital markets. The EIB's involvement helps mobilising other financiers by signalling that the project is sound and worth supporting, thereby facilitating its full financing and implementation.

Objectives

Developing new food products for healthy and sustainable diets, improving safety, taste, texture, and functionality. Research will be carried out on efficient technical solutions for protecting the environment as well as on affordable nutrition and sustainable food. A new innovation centre will be built to carry out the RDI activities.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 100 million

Total cost (Approximate amount)

EUR 256 million

Environmental aspects

The project is expected to be operated and implemented in conformity with applicable national and EU environmental legislations.

Procurement

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if after the project appraisal the EIB were to conclude that the Promoter is after all subject to EU public procurement legislation (Directive 2014/24/EU or 2004/18/EC where applicable), then the Bank would require the Promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2014/24/EU or 2004/18/EC where applicable), as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with the publication of tender notices in the Official Journal of the EU, as and where required.

Status

Signed - 6/04/2021