The Bank has invested EUR 4.2m in the commercial paper ("CP") issuance by the leading Baltic retailer Maxima Grupe UAB (the "company" or "issuer"). The size of the issuance is EUR 40m and the CP has a maturity of 12 months.
The CP will be used to finance the issuer's working capital needs. The Bank's presence is expected to provide confidence to investors by supporting the first ever CP issuance in the Baltic States and supporting a successful first CP issuance by the company.
ETI score: 63
This is the first sub-project under the EBRD Baltics CP Framework and supports primarily the development of the local capital market under the "Resilient" quality. It also improves standards of transparency and disclosure under the "Well-governed" quality.
MAXIMA GRUPE UAB
Maxima Grupe UAB is the leading retail chain in the Baltic states and the owner of the Maxima retail chain in the Lithuania, Latvia and Estonia, the Stokrotka chain in Poland, the T-Market chain in Bulgaria and e-grocer Barbora. The company is part of the Vilniaus Prekyba group, one of the largest retail groups in the Baltics and Central and Eastern Europe.
EBRD Finance Summary
Total Project Cost
The EBRD's support is important in order to contribute to the first issuance of the commercial paper in the Baltic states, which is expected to have a strong demonstration effect on market participants and serve as a reference point and benchmark for future CP issuances in the Baltic states. The EBRD's participation is expected to provide additional support for the issuance and to provide comfort and institutional credibility to potential investors.
Environmental and Social Summary
Categorised B (ESP 2019). Environmental and social due diligence for this project was undertaken internally and comprised review of documents submitted in the context of the first project with the Company, and annual reporting provided subsequently. The Company has a number of policies and procedures in place for the management of environmental, social, quality and supply chain issues including international management standards such as ISO14001 and ISO50001. National law and EU requirements are being met across all operations. The Social Accountability (SA8000) and Corporate Responsibility (AA1000) standards are currently being implemented. The Company operates a bespoke system for management of health and safety and reporting provided to date demonstrates that the Company has a clear understanding of key health and safety issues and monitors incidents and accidents in detail. At the time of approval of the first project with the Company, an environmental and social action plan was agreed covering two points - membership of the UN Global Compact and development of a GRI compliant sustainability report. The Company has completed is application of membership of the Global Compact as agreed and continues works on the development of the report with a target of 2021 for first release. Throughout all Maxima Group companies information on environmental and social issues is shared via the news sections of companies' official websites as well as through social media and local press. The Maxima Group also produced its annual report for the 2019 financial year, which includes a Corporate Social Responsibility (CSR) section summarising all environmental and social initiatives the Maxima Group has rolled out through the year. The Company will be required to continue to comply with the Bank's PR's, complete the ESAP as agreed, and provide annual E&S reporting to the Bank.
Technical Cooperation and Grant Financing
Company Contact Information
+370 669 00118
Savanoriu ave. 5, LT-03116, Vilnius, Lithuania
PSD last updated
17 Mar 2021
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