The proposed project comprises the expansion of the operations of Azbuka Vkusa LLP branded retail chain during 2007-2008, via investments in new stores and own production workshops. The proposed project will allow Azbuka Vkusa to acquire and refurbish stores in Russia and Ukraine, and consequently, to strengthen its position in this sector and to serve a larger customer base.
The Bank’s investment is expected to generate a strong transition impact through the expansion of Azbuka Vkusa’s advanced retail format in Ukraine and Russian regions. The project has strong demonstration effect as it supports improvements in corporate governance and transparency, as well as development of advanced marketing, operating, and human resources techniques. The Bank’s financing will also strengthen backward linkages, as Azbuka Vkusa is developing its own “ready meals” segment of business.
Established in 1992, Azbuka Vkusa LLP is a Moscow holding group operating 19 food supermarkets and stores offering a new concept of expanded variety of services and goods under the brand name “Azbuka Vkusa” (”Alphabet of Taste” in English). The Company comprises of operating and real estate companies, as well as ready meals production facility, an audio/video products retailer and a wine retailer.
Up to USD 50 million senior loan.
USD 230 million until the end of 2010.
Screened C/1. The project is likely to result in minimal adverse environmental impacts. A corporate environmental audit was conducted by a member of the Bank’s Environment Department which included site visits and interviews of key management staff. The audit assessed the
status of the Company’s regulatory compliance;
environmental and social performance;
potential risks and liabilities associated with the Company’s food production and supermarket operations; and
environmental and social processes involved in store acquisition, refurbishment and product sourcing.
The environmental due diligence has not identified any major environmental or social issues associated with stores and food processing facility in operation and/or under construction at this stage.
In line with EBRD procedures, the Company will be required to ensure that each store and its food processing facility will meet the relevant Russian Federation and EU environmental, health and safety standards and applicable Russian Federation laws and standards on employment, as well as standards consistent with the Conventions of the International Labour Organisation relating to the employment of children and young people, discrimination at work, and forced labour.
The Bank will evaluate the project’s compliance with the applicable environmental, health, safety and labour requirements during the lifetime of the project by reviewing annual environmental and social reports and as well as ad hoc visits to the Company by the Bank’s Environment Department staff.
Victoria Lubnina, Deputy General Director for Finance
Azbuka Vkusa LLP
Tel: + 7 495 504 34 87
Fax: + 7 495 504 34 77
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