Maxima Grupe

Location:

Lithuania

Project number:

50245

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

05 Sep 2018

Status:

Signed

PSD disclosed:

14 Sep 2018

Translated version of this PSD: Lithuanian

Project Description

The Bank has invested EUR 40m in the leading Baltic retailer Maxima Grupe UAB's first bond issuance. As part of the issuance, Maxima Grupe has received a credit rating of BB+/ stable outlook from S&P. The size of the issuance is EUR 300m and the Bond has a maturity of 5 years.

Project Objectives

The proceeds of the bond issuance will facilitate refinancing of the Borrower's existing short term bridge loan obtained for acquiring Polish supermarket chain Emperia Holding S.A. The Bank's presence is expected to provide confidence to investors by supporting the largest issuance by a private sector company in the Baltic States and supporting a successful first bond issuance by the Company.

Transition Impact

The transition impact stems from the following two transition qualities:

  • The primary transition impact quality of the Project is Resilient given that Maxima Grupe's bond will be the first bond issuance of this size by a corporate from the Baltic States. It is expected to have a strong visibility effect on market participants and serve as a reference point and benchmark for future international bond issuances in the Baltic States.
     
  • The secondary TI quality is Integrated stemming from the integration of the Polish retail chain into Maxima Grupe's operations. This will enable the Company to increase its scale and competitiveness on a regional level, while also fostering international trade by offering more local suppliers access to Lithuanian and Polish markets.

Client Information

MAXIMA GRUPE UAB

Maxima Grupe is the leading retail chain in the Baltic States, the largest employer and the second largest corporate in Lithuania.

Maxima Grupe is the owner of the Maxima retail chain in the Baltic States, the Stokrotka chain in Poland, the T-Market chain in Bulgaria and e-grocer Barbora which operates in Lithuania and Latvia.

Maxima Grupe is part of the Vilniaus Prekyba group, one of the largest retail groups in the Baltics and Central and Eastern Europe.

EBRD Finance Summary

EUR 40,000,000.00

Total Project Cost

EUR 300,000,000.00

Environmental and Social Summary

Categorised B (ESP 2014). Environmental and social due diligence on this project included completion of an environmental and social due diligence questionnaire by the Company and followup information exchange with Bank specialists on issues of key importance. The Company has disclosed that there are a number of policies and procedures in place for the management of environmental, social, quality and supply chain issues and that international standards such as ISO14001 and ISO50001, national law and EU requirements are being met across their operations.

The Company has appropriate staffing in place for management of those key issues both at the central level and at the level of individual stores. The Bank has engaged with the Company in developing Environmental and Social Action Plan (ESAP) to further develop approaches to corporate responsibility and corporate environmental and social reporting. The Company will provide regular reporting on the implementation of the ESAP and compliance with the Bank's Performance Requirements.

Technical Cooperation

None.

Company Contact Information

Vitalij Rakovski
info@maximagrupe.eu
+370 5 219 6000
http://www.maximagrupe.eu/
Maxima Gruope 279;, UAB Savanoriu 371; pr. 247, LT-02300, Vilnius, Lithuania

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