Translated version of this PSD: Romanian
The EBRD is considering providing a loan of up to €210 million to Louis Delhaize Group. The proceeds will be used to finance new stores of the Cora hypermarket chain in Romania, most of which will be carried out in regional cities.
The expansion of the Cora hypermarket chain in Romania (mostly in regional cities) is expected to generate strong linkages with local suppliers, thus providing the latter with new commercial opportunities with a reliable counterparty. The Project will also showcase the successful implementation of advanced sustainable energy solutions in retail building.
Louis Delhaize – Compagnie Franco-Belge d’Alimentation is part of the Louis Delhaize Group which acts as a food and other consumer goods retailer and operates mainly in France, Belgium, Luxembourg, the UK, Romania and Hungary. In Romania it operates under the Cora hypermarket brand.
Up to €210 million long-term loan (including syndication) to be available in Euros and Romanian leis (RON).
1. Screening Categories: The project was categorised “B” by the European Bank for Reconstruction and Development (EBRD), which means that an environmental and social analysis was required by the Bank, in accordance with the 2008 Environmental and Social Policy and Performance Requirements (http://www.ebrd.com/about/policies/enviro/policy/2008policy.pdf). The project has some environmental and social impacts which can be readily addressed through mitigation measures and an action plan.
2. Information Received: The company completed Environmental & Social, Human Resources (HR) management and store-specific HR management Due Diligence Questionnaires which were reviewed by EBRD.
3. Environmental and Social Issues: The client is an existing one for the EBRD. At the group level, they have environmental products and technologies such as bio-degradable packaging and organic products. They also have local sourcing and supplier treatment policies/practices. In Romania, 80 per cent supply is sourced locally. Due diligence confirmed that the Romanian operation is largely in line with the Bank’s Performance Requirements (PRs) and in the process of adopting and implementing the Group's corporate environmental and social practices. For the opening of new hypermarkets and a shopping mall, adequate environmental and social risk management systems are in place. Specific issues are addressed in ESAP (see below).
4. Environmental or Social Opportunities: The company’s modern hypermarket formats in Romania can be instrumental to strengthen the backward linkages with fresh meat and certain dairy product suppliers to meet requirements imposed by EU standards. An independent energy efficiency performance on the hypermarkets and shopping mall are on the way.
5. Summary of Environmental and Social Action Plan (ESAP): The ESAP addresses the following issues: development and implementation of formal HR management, environmental and OHS policies as well as implementation of the Group's food safety practices.
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