Auchan Global I

completed

IFC is considering an investment in AuchanSuper, the supermarket arm of Groupe Auchan SA to support an expansion of its supermarket network in the next three years in emerging markets (the “project”). This includes, but is not limited to: (i) expanding AuchanSuper’s supermarket network, Atak, in Russia to add 110 stores; (ii) entering Vietnam, a new market, with the supermarket format to open 10 stores; and (iii) opening or expanding operations in countries in Eastern Europe, Asia, and Africa. The proposed investment is a EUR 250 million debt and equity global facility to finance AuchanSuper in emerging markets.Groupe Auchan (the “Group”) operates 774 hypermarkets and 817 supermarkets in 15 countries, with over 302,000 employees. Auchan is the 4th largest retailer in France with a 9.2% market share and the world’s 10th largest food retailer in terms of revenue. The Group has 4 complementary business lines: (i) hypermarkets, (ii) supermarkets, (iii) commercial real estate (Immochan), and (iv) consumer banking activities (Banque Accord). The first Auchan store opened in 1961. In 1981, the Group expanded outside of France with the creation of Alcampo in Spain and accelerated in the 90’s with the opening of new markets such as China and Poland.First opening in 2005, the Atak chain in Russia consists of 125 stores, with total sales area exceeding 102,000 m2. Half the stores are owned, and half are leased from a property company. With no standard layout, Atak supermarkets have an area of 1,100 m2 on average, and range from 600 to 2,500 m2. All of them are one floor, most stores are at ground level of apartment buildings, but few are stand-alone buildings. Atak stores typically include a shopping gallery leased out to small commercial tenants.