Project Description
Provision of emergency short-term liquidity line in the amount of PLN 110 million (c. EUR 24 million) that will allow KIPF ("the company", "client") to actively manage working capital needs across business lines in light of increased sales volatility caused by the Covid-19 outbreak.
Project Objectives
This project was approved in the context of the Bank's response to the Covid-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to Covid-19, and this deviation, can be found on our website.
Transition Impact
ETI score: 69
The goal of this operation is to preserve the transition impact achieved under the existing project by providing the necessary working capital financing to address potential liquidity constraints in light of the pandemic.
Client Information
KORPORACJA INWESTYCYJNA POLSKIEJ FARMACJI SP ZOO
KIPF is a holding company for Pelion which has successfully operated in wholesale and retail pharma markets in Poland since 1990. KIPF is fully-owned by Mr. Jacek Szwajcowski and Mr. Zbigniew Molenda - the founders of Pelion.
EBRD Finance Summary
PLN 110,000,000.00
Total Project Cost
PLN 110,000,000.00
Additionality
EBRD financing is provided in the extraordinary circumstances of the Covid-19 crisis.
Environmental and Social Summary
Project has been categorised B (ESP 2019). The ESDD for this project was carried out in line with COVID 19 approach and was based on in-house ESDD carried out in 2019 for previous transaction (DTM 52026) and review of comprehensive AESR for 2019.
The ESDD has confirmed that the Company has well established ESH capacities and manages its operations in pharmacies, cosmetic stores, warehouses and pharmaceuticals distribution centres in line with established EHS Policies, implemented ISO 9001 quality management systems and with 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.
Warehouse construction financed under DTM 52026 has been finalised in early 2020 prior to COVID 19 pandemic; remaining works related to upgrades of retail pharmacies have been suspended due to pandemic-related restrictions introduced at national level. Pharmaceutical retail and distribution fall under critical services and the Company has continued to operate. It has implemented a set of protective procedures and safety measures for their staff and the public as per advice of the WHO, Polish Government and national sanitary inspectorate.
The Company has been diligently implementing the ESAP agreed in 2019. Namely, it has made progress in assigning formal responsibilities for environmental management at Group level, in developing unified EHS reporting and monitoring measures for daughter companies, in presenting directions within HR and H&S for the daughter companies, and most significantly it addressed the risk of employment of foreign workers through formalisation of standard requirements for employment agencies and aligning these with PR2, Directive 2008/104/EC on Temporary Agency Work and the Charter of Fundamental Rights of the European Union. Social matters have been addressed also in revised Pelion Code of Good Practice, consisting of Financial&Tax Security policies, IT Security Policy and also Code of Ethics. Requirements to follow the rules have been reflected by internal policies and procedures, but also in each Group Company's articles of association.
The ESDD confirmed that the existing ESAP is adequate and robust and does not need to be updated. The Bank will monitor the Project and the ESAP implementation through review of Annual E&S Reports and site visits as required.
Technical Cooperation and Grant Financing
None
Company Contact Information
Management Office
biuro_zarzadu@kipf.pl
+48 42 200 75 10
pelion.eu
PSD last updated
20 May 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.
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Tel: +44 20 7338 7168
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General enquiries
Specific enquiries can be made using the EBRD Enquiries form.
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.
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 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.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both 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. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 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.
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 (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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
