Empik Centrum Investments - Loan III

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 13887

Status Complete

Location

Poland

Business Sector

Manufacturing and Services

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 13887

Status Complete

Location

Poland

Business Sector

Manufacturing and Services

Notice Type

Private

Environmental Category

Approval Date

05 Sep 2000

Disclosure date

01 Sep 2000

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

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

Transition Impact

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.

The Client

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).

EBRD Finance

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).

Project Cost

Up to €20 million.

Environmental Impact

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.

Technical Cooperation

Transition impact

ETI Score:35

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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