Globus

Location:

Russia

Project number:

38247

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

C

Target board date:

15 Apr 2008

Status:

Repaying

PSD disclosed:

20 Dec 2007

Project Description

The proposed project is an up to EUR 112 million long-term secured, syndicated corporate loan to the client. Proceeds of the loan will be used for the construction and operation of hypermarkets around Moscow Region.

Transition Impact

Globus will introduce a new, modern retail format to the targeted locations around Moscow region and therefore have positive backward linkages, i.e. on local suppliers in Moscow region.

The Client

OOO Hyperglobus is a subsidiary of the German Globus Group and entered the Russian hypermarket sector in 2006 by successfully opening a store in Scholkovo, Moscow region.

The Globus Group is active in Germany, the Czech Republic and Russia by operating around 100 hypermarkets, DIY and home electronic stores.

EBRD Finance

Up to EUR 112 million long-term secured corporate loan to Globus Russia. The Loan will comprise of a:
• A loan of EUR 40 million for the account of the Bank; and
• B loan of EUR 72 million for the account of participating banks.

Project Cost

EUR 455 million.

Environmental Impact

The project has been screened C/1. A corporate audit of the Group’s approach to environmental, health, safety and labour management was conducted by a member of the Bank’s Environment & Sustainability Department and included site visits and interviews of key management staff.

The environmental due diligence has not identified any major environmental or social issues associated with stores in operation and/or under construction though improvements can be made to health and safety practices at the construction site visited.

An Environmental Action Plan (EAP) has been developed, agreed and covered such actions as the appointment of an Environmental Manager and the implementation of an Environmental Management System.

In addition, in line with EBRD’s Environmental Policy, the Company will be required to ensure that stores will meet the relevant Russian Federation and EU environmental, health and safety standards and applicable Russian Federation laws and standards on employment, as well as standards consistent with the Conventions of the International Labour Organisation relating to the employment of children and young people, discrimination at work, and forced labour.

The Bank will evaluate the project’s compliance with the EAP and applicable environmental, health, safety and labour requirements during the lifetime of the project by reviewing annual environmental and social reports and as well as ad hoc visits to the Company by the Bank’s Environment Department staff.

Technical Cooperation

None.

Company Contact

Name: Christian Heins
Tel.: +7 495 223 7 585
E-mail: christian.heins@globus.ru

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Text of the PIP

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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.