Provision of a senior long-term loan to Studenac d.o.o. (the "Company"), the largest food retailer in Croatia by number of stores, for acquisition of Pemo and Lonia (food retailers in Croatia), future investments and refinancing of the portion of the existing loan.
The loan will support the Company in its expansion efforts as well as expected further efficiency and profitability improvements.
ETI score: 65
Inclusive: the project will strengthen human capital resilience and development through (i) improvements in the Company's HR policies and practices benefitting both new Ukrainian refugee recruits, primarily women and young people, as well as the existing staff from the host community; and (ii) active participation in the country wide policy dialogue initiative "Svoja" aimed at promoting the integration of refugees displaced by the war on Ukraine into the Croatian labour market.
Green: the project will support improvements in stores' energy efficiency via implementation of high efficiency lighting, air conditioning and refrigeration equipment in both existing and new stores.
Studenac is an existing client of the Bank and one of the largest food retail chains in Croatia. The Company is owned by Enterprise Investors.
EBRD Finance Summary
Total Project Cost
The Banks's additionality stems from the tailored financing structure, mitigation of non-financial risks and support delivered on setting higher gender and economic inclusion standards.
Environmental and Social Summary
Categorised B (ESP 2019). Environmental and social due diligence was undertaken internally building on previous due diligence and using reporting provided by the Company in the context of existing projects. Key issues considered included the capacity, policies and procedures of Pemo and Lonia to manage key environmental and social issues, labour and occupational health and safety management within stores, site specific issues in relation to individual supermarkets. In previous transactions with Enterprise Investors third party consultant expertise was employed to review the approach of Studenac and an environmental and social action plan was agreed to address identified gaps in relation to management of hazardous materials, management of wastes, registration of ozone depleting substances and management of staff complaints. Studenac has completed the implementation of the ESAP and now has adequate procedures in place to ensure compliance with the Bank's PRs. Studenac will be required to ensure that Pemo and Lonia, once integrated, will have the same policies and procedures in place to ensure compliance with the Bank's Performance Requirements. Part of that process will include targets related to improvement of facilities to achieve the green transition elements of the project such as the upgrade of lighting, air conditioning and refrigeration equipment with highly energy efficient and low GHG technologies. This will be monitored via annual environmental and social reporting provided by the Company.
Technical Cooperation and Grant Financing
Company Contact Information
+385 (91) 282 8275
Cetvrt Ribnjak 17 21310 Omis Croatia
PSD last updated
10 Jun 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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).
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