Provision of a loan of up to €25m to support the development of the wholesale and retail operations of The SPAR Group Limited (the "Group" or "sponsor") in the Polish market. The Bank's loan will include a €5m capex tranche, an €8m tranche for general corporate purposes and a €12m tranche (initially uncommitted) to be utilised for completing the restructuring of "Piotr i Pawel", one of the Group's subsidiaries. The loan will be made available to the borrower in EUR or PLN.
The project will support the expansion of the SPAR network in Poland through the inclusion of independent retailers into its network, providing them with branding, know-how and goods. In parallel, the project will support the operational and financial restructuring of the distressed retailer "Piotr i Pawel", which SPAR Poland has recently acquired.
ETI score: 68
- Competitive: The Bank's financing will support corporate restructuring and expansion efforts, which is expected to lead to significant improvements in the operational performance and competitiveness of SPAR Poland.
- Inclusive: The project will generate learning opportunities for at least 120 elderly employees and will entail cooperation with a local Technical & Vocational Education & Training (TVET) institute, such as the Economic School of Poznan.
NEW POLISH INVESTMENTS SP ZOO
New Polish Investments Sp. z o.o. ("New Polish Investments" or the "Borrower" and together with its subsidiaries the "company" or "SPAR Poland"), the holding company for the Polish operations of The SPAR Group Limited (the "Group" or the "sponsor"), a South African publicly listed international wholesaler holding the rights to the SPAR brand in South Africa (and neighbouring countries), Ireland, Switzerland, Poland and Sri Lanka.
EBRD Finance Summary
Total Project Cost
The EBRD offers a tenor which is above the market average and necessary to structure the project. The Bank's financing effectively bridges a financing gap which results from the Covid-19 crisis. Furthermore, the Bank is able to provide non-financial support by helping the client develop inclusive and sustainable workforce planning measures and training strategies.
Environmental and Social Summary
Categorized B (2019 ESP). The project will support small and independent retailers who are currently not able to compete with larger ones through consolidated marketing and distribution systems, to become part of the SPAR network, through licensing agreements and provision of know-how and access to an integrated supply chain while preserving their independence and local ownership. The environmental and social (E&S) impacts associated with the Project are expected to be mainly linked with contractor management, health and safety, and labour requirements during the refurbishment/renovation of new stores which will be managed via the implementation of the environmental and social action plan (ESAP). Environmental and social due diligence (ESDD) has been undertaken internally by ESD and consisted of a review of the Corporate and COVID-19 Questionnaires completed by the client, a broad range of project documents comprising corporate policies and procedures and a conference call interview. ESDD revealed that the client (comprised of a Polish holding company and a company holding exclusive SPAR licence rights for Poland) is compliant with national laws. However, they need to develop an EHS management system to comply with the Bank's E&S Performance Requirements (PRs). An ESAP has been prepared and agreed with the client and key requirements include: inclusion of environmental and social requirements into the supply chain, occupational health and safety for operational and any future construction/refurbishment activities, contractor management, a consolidated HR policy at corporate (holding company) level rolled out to subsidiaries covering any EBRD PR2 requirements not addressed in national laws, and development and implementation of a stakeholder engagement plan including a grievance mechanism. It also requires the client to appoint competent and dedicated resources to manage the EHS management system. The Bank will monitor the Client's environmental and social performance in accordance with the Bank's PRs through review of reports and monitoring visits as required.
Technical Cooperation and Grant Financing
The Project will have a Technical Cooperation (TC) component provided by the Shareholder Special Fund.
Company Contact Information
+48 61 840 37 00
Wasz Sklep SPAR sp. z o.o. ul. Druskienicka 12, 60-476 Poznan
PSD last updated
10 Feb 2021
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