Fozzy

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

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.

Project ID 51425

Status Repaying

Location

Ukraine

Business Sector

Food and Agribusiness

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Viktoriya Kostroma
v.kostroma@fozzy.ua
+38-044-354-57-01
+38-044-354-57-01
www.fozzy.ua
BC SILVER BREEZE, 1B Tychyny Avenue, Kyiv, Ukraine, 02152

Project ID 51425

Status Repaying

Location

Ukraine

Business Sector

Food and Agribusiness

Notice Type

Private

Environmental Category

Approval Date

23 Apr 2020

Disclosure date

05 Feb 2020

Project Fozzy (Ukranian) (PDF, 0.44MB)

Project description

Project objectives

The Project will support Fozzy Group's strategy to expand its retail operations and improve sustainability of the business.

Transition impact

ETI Score:68

sition 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.

Client information

SILPO-FOOD LLC

Fozzy Group is one of the leading food retailers in Ukraine operating more than 500 stores nationwide.

EBRD Finance Summary

USD 60,000,000.00

The provision of a senior secured long-term loan of up to US$60 million

Total project cost

USD 160,800,000.00

Additionality

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 & 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

Viktoriya Kostroma
v.kostroma@fozzy.ua
+38-044-354-57-01
+38-044-354-57-01
www.fozzy.ua
BC SILVER BREEZE, 1B Tychyny Avenue, Kyiv, Ukraine, 02152

PSD last updated

05 Feb 2020

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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.

Integrity and compliance

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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Fozzy

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)