Monetka II

Location:

Russia

Project number:

41930

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

10 Nov 2010

Status:

Complete

PSD disclosed:

08 Oct 2010

Translated version of this PSD: Russian

Project Description

The EBRD is considering a senior secured loan of RUB 1 billion fully for the Bank’s account to support improvement in the logistics and distribution system of Monetka, as well as further development of modern retail to remote regions.

Transition Impact

This transaction will enable the Company to support a key area of much needed logistics improvements in Russia, raising standards of food supply chain. It will also facilitate competition in the sector by introducing modern format retailing in small towns in Russia with a population of less than 20,000 where modern retail is not present and this will assist in reducing regional and structural disparities.

The Client

OOO RM Group, a limited liability company, a holding company for Monetka’s discounter and supermarket chain in Russia.

EBRD Finance

RUB 1 billion senior secured loan for the account of EBRD.

Project Cost

RUB 1 billion.

Environmental Impact

The Project was Categorised B according to the EBRD’s Environmental and Social Policy 2008. The potential adverse future environmental and social impacts associated with the Project are site-specific and readily addressed through mitigation measures.

The Bank's environmental and social due diligence consisted of a site visit by ESD environmental specialist to two discount stores in Ekaterinburg and interviews with key individuals responsible for Environment, Health and Safety, Labour and Human Resources within Monetka and a review of EBRD Corporate E&S Due Diligence questionnaire completed by the Client. The curent environmental, health and safety managemet systems and past and current EHS performance were assessed. Due diligence confirmed that Monetka have adequate systems in place to manage their environmental, health, safety and HR impacts. They are largely compliant with the requirements of the EBRD's Performance Requirements.

Based on the EHSS due diligence an Environmental and Social Action Plan (ESAP) was developed and has been agreed with Monetka to ensure compliance with the Banks PRs. The Company will provide the Bank with regular reporting on the implementation of the ESAP. The Company is committed to comply with all PR's for their ongoing and future activities

The Bank will monitor the Company's environmental and social performance for the lifetime of the project through annual environmental and social reporting and via periodic site visits. The Company will be required to immediately notify the Bank of any incidents or accidents likely to have an effect on the environment or worker and public safety.

Technical Cooperation

None.

Company Contact

Veronika Domnina, CFO
Tel.: +7 343 216-19-70
E-mail: vdomnina@monetka.ru

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

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