Metro Myanmar

completed

Metro AG (“Metro” or the “sponsor” - https://www.metroag.de/en) is a global diversified retail and wholesale/cash and carry group. Headquartered in Düsseldorf, it operates about 760 wholesale stores in 25 countries and more than 280 hypermarkets throughout Germany. Metro had more than 137,000 employees in 2016-17, comprising over 55% women.As part of its global expansion in emerging markets, Metro in a joint venture with Yoma Strategic Holdings Ltd. – an existing IFC client in Myanmar, established Metro Wholesale Myanmar Ltd. (“Metro Myanmar” or the “company”). Metro Myanmar will operate as 100% delivery service, and will not have any walk-in stores in the traditional retail formats. The company will deliver food and non-food products to customers across HoReCa (hotels, restaurants, caterers), traders (generalist food, convenience stores, and service companies (office based services, factories, hospitals and clinics, private schools and international colleges).IFC is considering a loan to Metro Myanmar to partly finance its 3-year capex plan comprising of a central warehouse in Yangon and a delivery infrastructure, which would include future satellite warehouses and cross-docking platforms across Myanmar (the “project”). Metro Myanmar’s central warehouse is currently under construction at Thilawa Special Economic Zone (“Thilawa SEZ”), and the satellite warehouses and docking platforms will be developed in the future. These will be industrial warehouse facilities and not the traditional retail stores. The central warehouse in Yangon will also have a small processing section for ultra-fresh items. The warehouse management and delivery services will be outsourced to a third-party logistical service provider company (“LSPC”).