Project description
and objectives:
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The EBRD aims to provide a loan for up to €20 million to Empik Centrum
Investments SA (ECI). ECI is a holding company consisting of the largest
department store chain in Poland, Domy Towarowe Centrum (DTC), and EMPiK, a
chain of multimedia/book stores among others. The loan is mainly to help ECI
to complete DTC’s modernisation and refurbishment programme.
Project objectives: DTC is Poland’s only department store chain with 31 stores
in 22 medium and large towns throughout Poland. Since privatisation in
February 1998, DTC has embarked on an intense investment programme to
refurbish and modernise its stores as well as to build a new franchise
business. The EBRD’s loan would help ECI to achieve this goal, supporting the
privatisation and restructuring of one of Poland’s leading retailers and also
provide ECI with the working capital required for the peak retail season
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Transition impact:
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It is expected that the EBRD’s investment would allow ECI to reposition DTC as
a modern, consumer-focused clothing retailer. By offering a competitive outlet
for these garments, DTC would broaden consumer choice in Poland and help
support the local garment industry.
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The client:
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ECI is a wholly owned subsidiary of Eastbridge NV. The ECI group is the
largest non-food retail chain in Poland; EMPiK and DTC have consolidated sales
of US$ 211 million (€232.5 million).
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EBRD finance:
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A loan facility for up to €20 million.
This investment follows the ECI convertible bond issue in August 1999, when
AIG NEF and the EBRD each invested US$ 20 million (€18.6 million) in a
convertible bond issued by ECI to finance its operations in Poland (department
stores, multimedia, books, press, cosmetics stores, mail order and related
wholesale).
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Total project cost:
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Up to €20 million.
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Environmental impact:
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There are no production processes involved and consequently there are few, if
any, significant environmental, health and safety impacts associated with the
project.
The main issues reported relate to levels of emissions associated with the
many solid fuel boiler-houses used throughout the company branches. Owing to
the emission fees payable to local environmental regulators, the company plans
to switch from solid fuel to gas heating.
The company will be encouraged by the EBRD's Board representatives to
implement an environmental policy and management system in accordance with
best EU practice. The sponsor is fully aware of the considerable scope through
purchasing requirements to influence the environmental aspects of suppliers'
activities.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Dariusz Strojewski, Operation Leader: strojewd@waw.ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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