Pet Retail - Equity

Location:

Russia

Project number:

41225

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

10 Nov 2010

Status:

Cancelled

PSD disclosed:

24 Sep 2010

Translated version of this PSD: Russian

Project Description

The EBRD is considering:

(i) an indirect equity investment alongside Prometheus Capital Partners of approx. USD 5 million in the Pet Retail Group of companies, which operates one of the largest Russian pet-related products retail chain; and

(ii) a senior loan of up to USD 6 million to OOO Pet Retail, the key operational company of the chain.

EBRD financing will be used as development capital for further expansion of the chain. The Project scope entails corporate restructuring, operational transformation, new stores rollout and further acquisitions across Russia.

Transition Impact

The transition impact and demonstration effects associated with this potential investment are expected to include:

(a) demonstration of restructuring through M&A activity in the specialty retail sector in Russia;
(b) setting standards in corporate governance and business standards; and
(c) demonstration of the new products and processes through the provision of better service and product qualities in the chains’ stores.

The Client

Pet Retail group of companies was created via the merger of the Beethoven and 38 Parrots/Zooboom retail chains. Today it is one of the largest retail chains specialised in pet-related products comprising 41 stores in Moscow, Saint-Petersburg and other Russian cities.

EBRD Finance

USD 11 million.

Project Cost

USD 30 million.

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 review of EBRD Corporate E&S Due Diligence questionnaire completed by the Client and follow up questions. The findings of due diligence are that the stores are not associated with any significant environmental or social issues, are not a source of environmental pollution and are not a risk to local communities.

Based on the E&S due diligence an Environmental and Social Action Plan (ESAP) was developed and has been agreed with the Client to ensure the Company's compliance with the Bank’s Performance Requirements. 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

Alexander Oleinikov, CEO
Email: oleinikov.av@petretail.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

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.