Profi Rural Expansion

Location:

Romania

Project number:

47895

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

11 Nov 2015

Status:

Complete

PSD disclosed:

28 Aug 2015

Translated version of this PSD: Romanian

Project Description

The EBRD is considering a loan of up to RON 109.5 million to Profi Rom Food SRL (“Profi”), a leading food retailer based in Romania. The proceeds of the loan will be used, inter alia, to support the capex plan of the company related to expansion of Profi’s network of stores in Romania, including the recently launched format – Profi Loco – designed for rural areas.

Transition Impact

The transition impact of the Project is expected to stem from expansion of modern retail operations into smaller towns of Romania and setting standards of corporate governance and business conduct, in particular with respect to potentially improving standards of energy efficiency in existing and new stores. The Bank will review the retailers’ operation in terms of value chain sustainability and an action plan will be discussed with the client.

The Client

Profi is a leading food retailer in Romania, owned by Polish Enterprise Fund VI, a private equity fund managed by Enterprise Investors.

EBRD Finance

RON 109.5 million co-financed with a local bank

Project Cost

RON 197.1 million

Environmental and social categorisation, impact, and mitigation

The Project has been categorised B in accordance with the 2014 Environmental and Social Policy. The expansion of an existing supermarket chain is associated with limited environmental and social impacts that can be readily identified and mitigated. The Environmental and Social Due Diligence (ESDD) is still underway, and this PSD will be updated once due diligence has been completed. An Environmental and Social Action Plan will be developed and agreed with the Client, as necessary, to address any identified mitigation measures.

For Category A projects, this section will need to be updated on an annual basis.

Technical Cooperation

The Bank is expected to undertake an energy efficiency audit of the retail facilities of Profi, funded under the Energy Performance Assessment Framework.

Company Contact

Dumitru Dragomir, Chief Financial Officer

Profi Rom Food SRL

www.profi.ro

 

Business opportunities

For business opportunities or procurement, contact the client company.

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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.