Furshet

Location:

Regional

Project number:

34819

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

C

Approval date:

17 Apr 2007

Status:

Complete

PSD disclosed:

13 Sep 2006

Project Description

The proposed project comprises the expansion of the operations and further roll-out of Furshet’s branded retail chain during 2006-2007, via investments in new supermarkets in Ukraine and Moldova. Along with store development the expansion will include the implementation of a SAP system to improve operating efficiency. It will also comprise the restructuring of the Company’s balance sheet via refinancing of existing short and medium term loans.

Transition Impact

The Bank’s investment in an expansion of one of the leading local retailers is expected to generate a strong transition impact through the development of the Ukrainian retail sector, strong linkages with local producers and distributors, market expansion, efficiency improvements and increased competition.

The Client

Furshet is the second largest nation-wide retail chain in Ukraine operating 58 supermarkets under the “Furshet” brand. The Group comprises an operating holding company and a real estate holding company, both registered in Ukraine.

EBRD Finance

USD 90 million senior secured long term debt.

Project Cost

USD 227 million.

Environmental Impact

The proposed project has been screened C1 requiring an environmental audit to evaluate the Group’s procedures for assessing environmental, health and safety risks and liabilities in its planned stores including site selection, and to assess the ability of the Group to operate its portfolio of companies in accordance with EU and national standards for EHSL. Upon completion of due diligence, recommendations for remedial actions and those to bring the Project into compliance will be formulated into a time-bound, costed Environmental Action Plan (‘EAP’). The Company will be required to provide the Bank with an annual environmental report on the implementation of the EAP and any other environmental matters. This PSD will be updated following completion of environmental due diligence to include summary information on the EAP and any other environmental actions agreed with the Company.

Technical Cooperation

None.

Company Contact

Tel.: + 380 44 462 48 39 ; + 380 44 462 48 36 ; + 380 44 537 22 48

Fax: + 380 44 462 48 35

 

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

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Text of the PIP

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