EBRD to provide Fozzy Group with $60-mln loan for retal chain development

EBRD to provide Fozzy Group with $60-mln loan for retal chain development

The European Bank for Reconstruction and Development (EBRD) intends to provide a long-term loan to Fozzy Group, a commercial and industrial group, in the amount of $60 million for updating and ...

Approval date:
23 Apr 2020

Passed Final Review, Pending Approval

Project Description

The expansion and stores renovation of the two key food retail chains of Fozzy Group, "Silpo" and "Fora", including investments into energy and resource efficiency enhancement, focused on the reduction of food waste and loss in the operations of the retailer.

Project Objectives

The Project will support Fozzy Group's strategy to expand its retail operations and improve sustainability of the business.

Transition impact of the Project is expected to stem from the following:

Green quality: The Bank will support the implementation of energy and resource efficiency measures (such as freon-free refrigeration, efficient ventilation, heating, lighting, etc.) in existing stores and the replication of sustainable construction practices throughout newly opened stores, as well as the introduction of best practices in waste management.
Competitive quality: The Project will support the expansion of a modern food retail chain into regions with limited penetration of modern food retail, as well as the development and introduction of best practices into the Group's traffic and driving safety management in line with the ISO 39001 certification on Road Traffic Safety Management Systems.

Client Information
Fozzy Group is one of the leading food retailers in Ukraine operating more than 500 stores nationwide.

EBRD Finance Summary
USD 60,000,000.00

The provision of a senior secured long-term loan of up to US$60 million

Total Project Cost
USD 160,800,000.00

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