Pet Retail - Equity

cancelled

Translated version of this PSD: Russian The EBRD is considering: (i) an indirect equity investment alongside Prometheus Capital Partners of approx. USD 5 million in the Pet Retail Group of companies, which operates one of the largest Russian pet-related products retail chain; and (ii) a senior loan of up to USD 6 million to OOO Pet Retail, the key operational company of the chain. EBRD financing will be used as development capital for further expansion of the chain. The Project scope entails corporate restructuring, operational transformation, new stores rollout and further acquisitions across Russia. The transition impact and demonstration effects associated with this potential investment are expected to include: (a) demonstration of restructuring through M&A activity in the specialty retail sector in Russia; (b) setting standards in corporate governance and business standards; and (c) demonstration of the new products and processes through the provision of better service and product qualities in the chains’ stores. Pet Retail group of companies was created via the merger of the Beethoven and 38 Parrots/Zooboom retail chains. Today it is one of the largest retail chains specialised in pet-related products comprising 41 stores in Moscow, Saint-Petersburg and other Russian cities. USD 11 million. USD 30 million. The Project was categorised B according to the EBRD’s Environmental and Social Policy 2008. The potential adverse future environmental and social impacts associated with the Project are site-specific and readily addressed through mitigation measures. The Bank's environmental and social due diligence consisted of a review of EBRD Corporate E&S Due Diligence questionnaire completed by the Client and follow up questions. The findings of due diligence are that the stores are not associated with any significant environmental or social issues, are not a source of environmental pollution and are not a risk to local communities. Based on the E&S due diligence an Environmental and Social Action Plan (ESAP) was developed and has been agreed with the Client to ensure the Company's compliance with the Bank’s Performance Requirements. The Bank will monitor the Company's environmental and social performance for the lifetime of the project through annual environmental and social reporting and via periodic site visits. The Company will be required to immediately notify the Bank of any incidents or accidents likely to have an effect on the environment or worker and public safety. None. Alexander Oleinikov, CEO Email: oleinikov.av@petretail.ru