The SPAR Group Limited

Location:

Poland

Project number:

52216

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

24 Nov 2020

Status:

Approved

PSD disclosed:

10 Feb 2021

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

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.

Project Objectives

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. 

Transition Impact

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.

Client Information

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

EUR 25,000,000.00

Total Project Cost

EUR 114,000,000.00

Additionality

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

Jakub Karbowiak
jakub.karbowiak@spar.pl
+48 61 840 37 00
www.spar.pl
Wasz Sklep SPAR sp. z o.o. ul. Druskienicka 12, 60-476 Poznan

Implementation summary


PSD last updated

10 Feb 2021

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 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 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.

 

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