Project description
and objectives:
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The proposed project comprises the expansion of the operations and further
roll-out of Furshet’s branded retail chain during 2006-2007, via investments
in new supermarkets in Ukraine and Moldova. Along with store development the
expansion will include the implementation of a SAP system to improve operating
efficiency. It will also comprise the restructuring of the Company’s balance
sheet via refinancing of existing short and medium term loans.
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Transition impact:
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The Bank’s investment in an expansion of one of the leading local retailers is
expected to generate a strong transition impact through the development of the
Ukrainian retail sector, strong linkages with local producers and
distributors, market expansion, efficiency improvements and increased
competition.
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The client:
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Furshet is the second largest nation-wide retail chain in Ukraine operating 58
supermarkets under the “Furshet” brand. The Group comprises an operating
holding company and a real estate holding company, both registered in Ukraine.
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EBRD finance:
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USD 90 million senior secured long term debt.
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Total project cost:
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USD 227 million.
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Environmental impact:
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The proposed project has been screened C1 requiring an environmental audit to
evaluate the Group’s procedures for assessing environmental, health and safety
risks and liabilities in its planned stores including site selection, and to
assess the ability of the Group to operate its portfolio of companies in
accordance with EU and national standards for EHSL. Upon completion of due
diligence, recommendations for remedial actions and those to bring the Project
into compliance will be formulated into a time-bound, costed Environmental
Action Plan (‘EAP’). The Company will be required to provide the Bank with an
annual environmental report on the implementation of the EAP and any other
environmental matters. This PSD will be updated following completion of
environmental due diligence to include summary information on the EAP and any
other environmental actions agreed with the Company.
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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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Tel.: + 380 44 462 48 39 ; + 380 44 462 48 36 ; + 380 44 537 22 48
Fax: + 380 44 462 48 35
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EBRD contact:
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Lyudmyla Lishchenyuk, Operation Leader: lishchel@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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