Provision of a senior loan of up to EUR 50m (in PLN equivalent) to Eurocash S.A. (the "company", "borrower") - a leading wholesale distributor of FMCG products in Poland. The EBRD financing will support the company's acquisition of online food retailer Frisco.pl as well as the company's working capital needs (the "project").
The operation will enable the company to strengthen its operations, as the Bank's loan will support the acquisition of the Polish online food retailer Frisco.pl as well as increased working capital needs of the company.
ETI score: 65
Transition impact of the transaction will be mainly derived from two transition qualities:
(i) Inclusive, as the Project supports youth inclusion through the expansion of vocational education and training offers and improved qualification standards;
(ii) Competitive, as the Project will support the corporate restructuring of the acquired subsidiary, resulting in quantifiable synergies and improvements in profitability margins.
Eurocash S.A. is a leading wholesaler in Poland, majority-owned (ca. 44%) by Luis Manuel Conceicao do Amaral, with the remaining shares being free float on the Warsaw Stock Exchange. The company is also present in the retail segment and pursues a strategy of strengthening its positions there via an organic store network expansion as well as acquisitions.
EBRD Finance Summary
Total Project Cost
The Bank is providing financing of a longer tenor, which is needed to support the project as well as provide resilience to the company's balance sheet. Furthermore, the Bank is able to provide non-financial support, including the Bank's engagement in policy dialogue with the Ministry of Education to support the company's effort to improve the national vocational training curricula in the retail sector in line with EU standards.
Environmental and Social Summary
Categorised B (ESP 2014). The wholesale distribution of FMCG is associated with a range of environmental and social issues which are typically well understood and readily managed through industry standard environmental and social management systems, policies and procedures. Eurocash has a comprehensive suite of such systems, policies and procedures which allow the Company to manage these issues. The company has a written Environmental Policy covering a range of issues including energy management, waste management and other resource efficiency initiatives. Health and safety is adequately staffed and managed with the Borrower recognising this as a key issue for the company. Systems are in place at the corporate and facility level and accident / incident statistics are tracked and reported. A comprehensive suite of HR policies are in place covering the range of issues relevant to PR2 and the Company has a written Code of Ethics. Supply chain issues are managed through an auditing and certification process with the main focus on food safety, although the Company is developing selected sustainability initiatives such as signing up to Marine Stewardship Council Supply Chain certification. Finally, the Company has a range of Corporate Social Responsibility initiatives in place and has mapped key stakeholders, putting in place relevant communication means for each. Given this range of systems, policies and procedures no ESAP is required for this Project. Frisco.pl is an on-line business with one large warehouse for receipt and distribution of goods. The key E&S issues are therefore principally focussed on labour management (PR2) and health and safety (PR4). Eurocash will be required to extend is current management systems, covering these issues in particular, to ensure compliance with national law and the Bank's PRs. Generally, the Company will be required to comply with the Bank's Performance Requirements and provide annual reporting on environmental and social issues.
Technical Cooperation and Grant Financing
A TC of up to EUR 30,000, funded by SSF under the Inclusion Technical Assistance Framework, will be provided to support the Company's engagement with the Ministry of Education to enhance vocational qualification standards, and to support the Company's response to the COVID-crisis, with a focus on workforce planning and recruitment in a gender sensitive and sustainable manner.
Company Contact Information
ul. Kopanina 59, 60-105 Poznań, NIP: 7791906082
PSD last updated
07 May 2020
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Independent Project Accountability Mechanism (IPAM)
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