Project Description
The project consists of equity financing for Baltic Food Holding AS, Norway and debt financing for Baltic Food Holding Eesti OY, Estonia.
The financing will be used for the expansion of the company’s supermarket operation and associated wholesale and distribution activities in Estonia, Latvia and Lithuania.
Transition Impact
The project is expected to have a significant impact on the transition, which is likely to derive from:
- market expansion through linkages to local suppliers and distributors as a result of the increased share of locally supplied goods. This will lead to improved efficiencies in food distribution, as price savings will be passed on to the consumers who are currently forced to pay for inefficient middlemen in the system.
- increased competition in food retailing and wholesaling, leading to a better service for customers. As a large operator, Baltic Food Holding will enforce product quality and logistics standards (such as bar coding) from local producers and importers.
The Client
Baltic Food Holding Eesti OY, an Estonian limited liability company, is one of the largest pan-Baltic operators of supermarkets and food wholesale and 100 per cent owned by Baltic Food Holding AS in Norway.
EBRD Finance
EBRD financing consists of a €5.5 million equity investment in Baltic Food Holding AS, Norway and a loan of €6.6 million to Baltic Food Holding Eesti OY, Estonia.
Environmental Impact
The operation was screened B/0, requiring an environmental analysis of the company’s environmental policies and practices. The analysis confirmed that all the facilities currently comply with national requirements for environment, health and safety. The company is involved in a number of environmentally proactive initiatives, including energy efficient design of heating systems in warehouses and food halls, collection of packaging materials for re-use and the collection of bottles for return to breweries for re-use. The company will be required to undertake operation of its retail facilities in compliance with relevant national, EU and/or World Bank environmental standards.
Technical Cooperation
None.
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
Project Complaint Mechanism (PCM)
The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.
Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.
