The European Bank for Reconstruction and Development (EBRD) is set to buy a minority stake in privately-owned agricultural group Servolux.

Headquartered in Mogilev, Belarus, Servolux group operates in several segments, including the manufacturing of poultry, processed meat, dairy products and animal fodder, as well as food retail.

To acquire the stake in the Belarus firm, the EBRD has agreed to invest €10m ($11.3m), which will be used by the company to build a meat processing facility in Smolevichi.

The facility will have a production capacity of 70t of meat per day.

Additionally, Servolux is planning to construct a 6.58MW combined cooling heat and power unit (CCHP) for the processing facility. The power plant will reduce annual carbon emissions by 6,200t.

Servolux’s project qualifies for a grant under the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme.

The EBRD has invested over €2bn in 95 projects in various sectors of the country’s economy since 1992.

In March, EBRD provided a loan of $48m to the Turkish agricultural products exporter Tiryaki Agro to support its business expansion plans.

The loan was used by the company for day-to-day operations such as processing, storing and trading pulses, grains, feed, oilseeds, corn and nuts.