Azbuka Vkusa Extension

Location:

Russia

Project number:

42127

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

26 Oct 2010

Status:

Completed

PSD disclosed:

10 Sep 2010

Project Description

The EBRD is considering providing a multi-loan facility to OOO Azbuka Vkusa, a local Russian food retailer, to finance: 1) the construction and equipping of new stores in Russia and in Ukraine, 2) working capital financing, 3) the construction of a logistics centre, and 4) the financing of a ready-meal factory.

Transition Impact

The EBRD loan would facilitate expansion of the chain into the regions of Russia and Ukraine, thereby enhancing competition in these locations to give customers more choice.

Furthermore, the launch of the ready-meal factory would provide customers with a greater assortment of prepared foods and create stronger backward linkages to farmers providing raw materials as well as more vertical integration for the Borrower.

A demonstration effect will be achieved through the introduction of new technology and production efficiencies, as well as and knowledge and skills transfer.

The Client

OOO Azbuka Vkusa (the “Borrower”) manages and operates a chain of supermarkets under the brand name Azbuka Vkusa (“Alphabet of Taste” in English). It is a locally-owned and operated Russian food retailer.

EBRD Finance

Russian rouble 1.5 billion

Project Cost

Russian rouble 1.5 billion

Environmental Impact

Screened B. The Project was categorised B according to the EBRD’s Environmental and Social Policy 2008. The potential adverse future environmental and social impacts associated with the Project are site-specific and readily addressed through mitigation measures.

Due diligence is still ongoing, following completion an Environmental and Social Action Plan (ESAP) will be developed and agreed with the Company prior to Board submission to ensure the Company's compliance with the Bank’s Performance Requirements.

The Bank will monitor the Company's environmental and social performance for the lifetime of the project through annual environmental and social reporting and via periodic site visits. The Company will be required to immediately notify the Bank of any incidents or accidents likely to have an effect on the environment or worker and public safety.

Technical Cooperation

None.

Company Contact

Viktoria Lubnina, Finance Director, OOO Azbuka Vkusa

Email: vlubnina@azbukavkusa.ru

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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