VF Komerc Debt


Bosnia and Herzegovina

Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

04 Apr 2006



PSD disclosed:

18 Jan 2006

Project Description

The proposed financing will help VF Komerc, a leading food retailer in Bosnia and Herzegovina to upgrade its existing stores and to expand its operations throughout the country,

Transition Impact

The project’s transition impact will result in improving standards of corporate governance, increased competition and greater efficiency in the food distribution sector. The Bank will seek to increase VF Komerc’s transparency in external reporting, and to enhance its corporate structure and organisation. Also, the project should facilitate further market development throughout the value chain by contributing to Company’s continuing efforts to expand its retail network in BiH’s medium sized towns. This development should help to reduce regional and structural disparities.

The Client

VF Komerc is a limited liability company organised under the laws of Bosnia and Herzegovina. The Company is the leading supermarkets operator in the country.

EBRD Finance

The total financing package is for up to EUR 25 million and would consist of:

(i) up to EUR 16 million long-term secured debt

(ii) up to EUR 9 million equity.

Project Cost

Up to EUR 74 million.

Environmental Impact

Screening categories and rationale for classification
A retail development such as this project has some environmental impacts which can be readily identified and prevented through adequate mitigation measures. For the above reasons, the EBRD has classified the project C/1 and as such it required an environmental audit. The audit took the form of a corporate environmental review.

Environmental impacts and mitigation measures
Potential environmental issues associated with expansion of the Company’s supermarket operations are as follows:

  • environmental, employment, hygiene and safety issues associated with the operation of the supermarkets
  • environmental due diligence procedures for site selection
  • safety of construction materials
  • environmental, health and safety issues associated with construction
  • formulation of corporate environmental, health and safety, human resources and supply chain policies to reflect best international practice

Upon completion of due diligence the Bank will agree with the Company an environmental action plan to ensure that the Company addresses the above issues and that each store will meet the relevant national standards and requirements and best international practice in terms of environmental, health and safety. They will be required to submit an annual environmental, health and safety report to the Bank which will detail progress on implementation of the action plan and other relevant issues.

Labour issues
As well as complying with national laws and standards on employment, the company will have to comply with the requirements of 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 continue to evaluate the project’s compliance with the applicable environmental, health, safety and labour requirements during the lifetime of the project. This will be undertaken by reviewing annual environmental reports and any relevant information prepared for the project covering the status of implementation of environmental action plans and may incorporate visits to the project.

Technical Cooperation


Company Contact

Mr Jasmin Selmanagic, Director

Tel: +387 33 77 51 50



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

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