The expansion and stores renovation of the two key food retail chains of Fozzy Group, "Silpo" and "Fora", including investments into energy and resource efficiency enhancement, focused on the reduction of food waste and loss in the operations of the retailer.
The Project will support Fozzy Group's strategy to expand its retail operations and improve sustainability of the business.
ETI score: 68
Transition impact of the Project is expected to stem from the following:
- Green quality: The Bank will support the implementation of energy and resource efficiency measures (such as freon-free refrigeration, efficient ventilation, heating, lighting, etc.) in existing stores and the replication of sustainable construction practices throughout newly opened stores, as well as the introduction of best practices in waste management.
- Competitive quality: The Project will support the expansion of a modern food retail chain into regions with limited penetration of modern food retail, as well as the development and introduction of best practices into the Group's traffic and driving safety management in line with the ISO 39001 certification on Road Traffic Safety Management Systems.
Fozzy Group is one of the leading food retailers in Ukraine operating more than 500 stores nationwide.
EBRD Finance Summary
The provision of a senior secured long-term loan of up to US$60 million
Total Project Cost
Financing Structure: EBRD offers a tenor, which is above the market average and is necessary to structure the project.
Standard-setting: the client seeks/makes use of EBRD expertise on higher environmental standards and energy and resource efficiency.
Environmental and Social Summary
Categorised B. Environmental and social due diligence for this Project included the completion of a detailed corporate Environmental and Social Due Diligence (ESDD) questionnaire by the Group, meetings between Group's representatives a site visit to a number of Group's stores and logistics center.
During ESDD it has been established that Fozzy has systems in place for the adequate management of environmental, health and safety and social aspects and there are staff specifically dedicated to the management of these issues.
The review of the systems demonstrated that Fozzy is compliant with national regulatory requirements and has a number of best international practice initiatives in place, such as implementation of the energy and resource efficiency measures.
An ESAP has been prepared and shared with the Group covering all aspects of the Bank's Performance Requirements including such issues as supply chain management, traffic and driving safety management, improved workers and community safety as well as stakeholder engagement.
Fozzy will be required to provide the Bank with annual reporting on the implementation of this ESAP and on any other environmental and social issues arising in the year.
Technical Cooperation and Grant Financing
TC funds provided by:
- the Japan-EBRD Technical Cooperation Fund to partially cover Project's external legal costs.
- EU Neighbourhood Investment Facility to cover costs for identification of sustainable resource investment opportunities.
- EBRD Shareholder Special Fund to cover mapping of risks and opportunities for resource efficiency along food supply chain.
Company Contact Information
BC SILVER BREEZE, 1B Tychyny Avenue, Kyiv, Ukraine, 02152
PSD last updated
05 Feb 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
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The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
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Access to Information Policy (AIP)
The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.