Profi Romania Grocery (IFC-44813)

Countries
  • Romania
Geographic location where the impacts of the investment may be experienced.
Specific Location
Cluj, Prahova, Giurgiu, Neamt, and Timis
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 29, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
SC PROFI ROM FOOD SRL
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Construction
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 58.62 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 50 million
Converted using 2021-03-30 exchange rate.
Project Cost (USD)
$ 568.57 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 485 million
Converted using 2021-03-30 exchange rate.
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 15, 2021

Disclosed by Bank Mar 30, 2021

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

 The proposed investment would allow the company to (i) further expand its reach in the country by opening 800 new stores by 2027 including the acquisition of existing stores and greenfield developments; and (ii) partially refinancing its existing debt during the next three-year period.  The investment will address some of the country's developmental challenges by increasing access to quality and affordable goods across the country and providing better access to modern retail in rural areas of Romania.                                              

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The investment consists of an A loan of up to €50 million to Profi Rom Food S.R.L. (“Profi” or the “company”), the largest food retailer in Romania based on the number of stores. Profi is owned by Mid Europa Partners (the “sponsor”), a private equity firm. The proposed investment would allow the company to (i) further expand its reach in the country by opening 800 new stores by 2027 including acquisition of existing stores and greenfield developments; and (ii) partially refinancing its existing debt during the next three-year period (the “project”).

Profi (https://www.profi.ro/) was established in 1979 in Romania, and has a presence in all 41 counties of the country supplying groceries, fruits, vegetables and related household products. As of March 2021, the company has 1,404 stores in 4 formats:

-          Profi Supermarket (avg. sales area 400 m2);

-          Profi City (avg. sales area 220 m2);

-          Profi Loco in rural areas (avg. sales area 220 m2); and

-          Profi Mini (avg. sales area 121 m2).

The company sources and carries its own inventory of over 5,400 products and over 1,800 brands. For this purpose, the company has distribution centers (DCs) in 5 major counties of Romania i.e. Cluj, Prahova, Giurgiu, Neamt and Timis. A typical DC has an area of around 40,000 m2, has rack storage space, receiving and dispatch bays.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Profi Rom Food SRL
Liviu Pop
Processes and work relations manager
+40 799 005 457
liviu.pop@profi.ro

 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works