Provision of a long term senior loan of up to EUR 85 million in favour of Korporacja Inwestycyjna Polskiej Farmacji Sp. z o.o. ("KIPF", "Company"), a limited liability company domiciled in Poland and DEETA B.V., a private limited liability company domiciled in the Netherlands (as joint co-borrowers) for use in Pelion S.A. ("Pelion") and its subsidiaries, mainly CEPD N.V., to finance the capex programme focused on digital expansion and e-commerce in Poland and Lithuania, and acquisitions of pharmacies. Out of EUR 85 million loan, EUR 60 million will be committed and EUR 25million uncommitted. The Loan is part of a larger financing package with mBank Poland, which will provide EUR 75 million in parallel. Total financing from EBRD and mBank Poland amounts to EUR 160 million.
KIPF is a holding company of Pelion Group, the leading pharmaceutical distributor and pharmacy retailer in Poland. The proposed facility will support the investment programme carried out by Pelion Group in Poland and Lithuania. The proceeds from the EBRD loan will be allocated towards capex programme focused on expansion in the area of logistics (including BREEAM Very Good certified warehouses), e-commerce in Poland and Lithuania, and expansion via M&As. The Project will enable Pelion Group to strengthen its market position, enhance its logistics and network coverage, and benefit from economies of scale.
ETI score: 67
The transition impact of the proposed project will be derived from the expansion of e-commerce services, enabling Pelion to reach online sales levels that are comparable to those achieved in the most advanced markets. In addition, the Company will launch a new learning programme for young people to develop digital skills critical for the Company's e-commerce expansion.
KORPORACJA INWESTYCYJNA POLSKIEJ FARMACJI SP ZOO
KIPF sp. z o.o., a limited liability company domiciled in Poland, a holding company of Pelion Group.
DEETA B.V., a private limited liability company domiciled in the Netherlands.
The co-borrowers, through their shareholdings, are part of Pelion Group of companies, the leading pharmaceutical distributor and pharmacy retailer in Poland, with operating subsidiaries in Poland, Lithuania and Sweden
EBRD Finance Summary
A senior term loan is divided into a committed tranche of EUR 60 million and an uncommitted tranche of EUR 25 million.
Total Project Cost
The total amount of syndicated financing arranged amounts EUR 160 million. The total Project cost, including Pelion's contribution, amounts EUR 237 million.
The EBRD loan helps to fill a funding gap and is required to structure the project. Furthermore, the project supports higher standards both in relation to promoting gender inclusive practices and by supporting the implementation of energy efficiency measures in line with BREEAM 'Very Good' standards for the new warehouses
Environmental and Social Summary
Categorised B (2019 ESP). Environmental and social risks related to operation of a pharmaceutical distribution company and capex related to construction of new warehouses and improvements to existing facilities are site specific and can be managed by appropriate mitigation measures. The Bank is familiar with the Company E&S capacity and management systems through two previous transactions (DTM 50384 and 52033). The ESAP agreed in the 2019 has been implemented in a timely manner and annual reporting has been comprehensive. The ESDD was carried out by ESD through review of the latest AESR and additional submissions from the company covering the investment plan, HR policies and sustainability reporting.
The Company has established an Environmental Policy and responsibilities for environmental management at the group level and in the daughter companies. The group's Environmental Policy and guidelines are based on the EBRD PRs, ISO 14001, OECD guidelines on environmental issues and NSF International best practices. The majority of daughter companies have implemented the ISO 9001 quality management system and comply with the strict requirements of the Good Distribution Practices (GDP) for Pharmaceutical Products governed and regularly controlled (through site audits) by the Regional and Main Pharmaceutical Directorate in Poland for compliance with national Pharmaceutical Law and EU Directive on falsified medicinal products. The ESDD concluded that waste management, waste water discharges and air emissions at specific sites are in compliance with national and EU legislation. As result of ESAP requirements, the Company has strengthen the role of the group environmental management team and the channels for reporting on E&S performance from the daughter companies.
Facilities to be constructed under the current investment programme will be built on land plots already owned by the Company and will not require an EIA process. The Company is proactively introducing energy efficiency measures in its new and renovated assets through introduction of heat pumps with heat recovery, use of materials with high insulation coefficient, LED and automatic lighting and other provisions. Land acquisition, planning, design and contractor management for new sites and renovations are closely supervised by a dedicated construction project team. The Company has strengthened contractors monitoring as result of previous transaction with the Bank.
Company has dedicated H&S manager at Group level, regularly advising operational managers at daughter companies and with the dedicated construction management team. External H&S consultants support the company in occupational H&S training, risks assessments and occupational monitoring. Under the ESAP agreed in 2019 the Company finalised development and training on corporate H&S Handbook outlining company standards and good practices.
The Company employs over 10 000 employees (circa 80% female). HR management is organised in each individual daughter company with overarching support from the Group level. In cooperation with EBRD the Company has addressed its risks related to use of foreign workers employed under agency agreements, developed unified contractual standards and policies in regards to agency workers and implemented systems of audits of the work agencies. The ESDD has reviewed the corporate Ethics policy against Banks GBVH and other labour requirements and the grievance mechanism and found it aligned with PR2 requirements.
The ESAP agreed in 2019 has been implemented and there is no need for revision. The Company has committed to following the developments of the legal requirements in regards to Corporate Sustainability Reporting Directive (CSRD) and will be prepared to published relevant sustainability reports when legislation becomes binding. The Bank will continue to monitor the Company's E&S performance through review of annual reports and site visits as required.
Technical Cooperation and Grant Financing
Company Contact Information
+48 42 200 75 10
ul. Zbaszynska 3, 91-342 Lodz
PSD last updated
10 Jan 2022
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