South-East Europe Food Retail (IFC-46855)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
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
Active
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
Sep 12, 2022
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 KAUFLAND ROMANIA SCS
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Loan Amount (USD)
$ 175.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Investment Amount (USD)
Not Disclosed
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 13, 2023

Disclosed by Bank Jun 23, 2022

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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.

According to the disclosure page, IFC will provide of up to EUR 175 million senior loan to German retail chain Schwarz Group (Schwarz, or the Group). The proceeds of the loan will be used to support the expansion of Lidl format stores in the Western Balkans, including Albania, Bosnia and Herzegovina, Kosovo, North Macedonia and Montenegro (EUR 75 million) and the expansion of Kaufland operations in Romania and Moldova (EUR 100 million).The Schwarz Group is divided into a retail, production, and environmental services division. Lidl and Kaufland are its pillars in food retailing. Some private label products of Lidl and Kaufland, ranging from ice cream to beverages, are produced at the Schwarz Produktion division. Special emphasis is placed on the use of sustainable raw materials and environmentally friendly packaging. With its environmental service provider PreZero, the Schwarz Group pursues its vision of closed loop waste recycling. With more than 341,000 employees, the discounter Lidl is currently present in 30 countries with around 12,000 stores and more than 200 goods distribution and logistics centers. Lidl’s assortment ranges from both own private label and well-known branded goods from the food and non-food sector. As part of its expansion program, Lidl is planning on launching operations with the construction of new stores and potentially warehouses in 5 countries: North Macedonia, Albania, Montenegro, Bosnia and Herzegovina and Kosovo. Kaufland is active in 8 European countries with more than 1,350 stores and over 139,000 employees. With an average of 30,000 product items, the company offers an extensive range of groceries and everything for everyday needs. Kaufland Romania and Moldova are part of the European Kaufland store network. Present in Romania for the past 15 years, the company currently operates a network of 152 stores, 2 logistics centers and 2 administrative offices with approximately 16,019 employees. In 2019, Kaufland opened first two stores in the Republic of Moldova and is currently operating a chain of 7 stores in the country. As part of its 2022-24 financial year expansion program, Kaufland plans to open 41 and 9 new stores in Romania and Moldova accordingly, mainly by greenfield construction.                                            

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
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No contact information was added at the time of the disclosure. 

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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

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