Lenta Sustainable Regional Development

Location:

Russia

Project number:

45013

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

10 Dec 2013

Status:

Signed

PSD disclosed:

27 Jan 2014

Translated version of this PSD: Russian

Project Description

The EBRD has provided a loan of up to RUB 4.6 billion (€ 100 million equivalent) to Lenta LLC. The loan proceeds will be applied towards financing Lenta’s investment programme during 2014-2015, comprising investments in existing and new regional stores and distribution centres, including energy efficiency and other investments leading to improved sustainability performance.

Transition Impact

The Bank’s financing supports further development of the Russian retail sector. It will facilitate the development of regional supplier and logistics networks and set standards through sustainability investments to be made by Lenta across its existing and new store networks.

The Client

Lenta is one of the leading Russian food retailers operating hypermarkets with a value for money proposition for the customers supported by a low-cost operational model. Lenta is one of the most regionalised chains, operating stores from St. Petersburg to Novosibirsk.

EBRD Finance

Long-term loan of up to RUB 4.6 billion (€ 100 million equivalent) to Lenta LLC.

Project Cost

RUB 4.6 billion (€ 100 million equivalent).

Environmental Impact

The proposed project has been categorised B. Independent consultants, in accordance with Terms of Reference (TOR) provided by the Bank, undertook a corporate review of Lenta’s environmental, health, safety and human resources management and performance. The key findings from the E&S due diligence review are that there are no significant adverse environmental or social impacts associated with the operations of the Company.

An Environmental and Social Action Plan has been developed to ensure that the Group’s operations and the project will meet the Bank’s Performance Requirements, with the emphasis on formalising management systems and gaining environmental management capacity to ensure that the Company can effectively manage and monitor the key environmental and social risks associated with its operations. Lenta will continue to provide the Bank with annual reports on environmental and social issues and the implementation of the agreed Environmental and Social Action Plan.

Technical Cooperation

None.

Company Contact

Website: http://www.lenta.com

 

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.