Schwarz Rural Regions - Kaufland Poland

complete

The EBRD is considering providing loans of up to €200 million in aggregate to the Schwarz Group’s Kaufland operations in Poland and Bulgaria and Lidl operations in Bulgaria and Romania. The proceeds will be used to finance the expansion and entry, respectively, of the two discount formats in these countries. The project will primarily finance Lidl and Kaufland stores in the more remote / rural store locations of the countries. The project is the fourth in regional co-operation to finance the Schwarz Group’s strategic expansion. The proposed project will bring new formats of modern retail and the convenience of discounter shopping to large portions of the Polish, Romanian and Bulgarian population in the more remote and rural regions. Procurement of products locally will generate strong backward linkages and encourage local producers to process according to best business practice. The project will also benefit the countries through advanced logistic systems and infrastructure as well as energy efficient construction techniques, that are closely correlated to the group’s store rollout plans. Kaufland Bulgaria EOOD and Lidl Bulgaria EOOD, companies organised and existing under the laws of Bulgaria, Lidl Romania s.r.l., a company organised and existing under the laws of Romania and Kaufland Polska Markety Sp.z.o.o., a company organised and existing under the laws of Poland. Up to €300 million long-term loan (including syndication) to partially finance the further expansion of Kaufland in Bulgaria and Poland and the entry of Lidl in Romania and Bulgaria. €440 million This project was categorised B under the EBRD’s Environmental and Social Policy 2008. Due diligence is being focused on Kaufland and Lidl’s capacity and systems to manage environment, health, safety and labour issues in the development and operation of stores. The Bank has existing loans with Kaufland in Bulgaria and Poland and has received satisfactory reporting on environment and social matters to date. Under the proposed project Kaufland and Lidl will be required to comply with the Bank’s Environmental and Social Policy 2008 Performance Requirements applicable to the project (specifically PRs 1-8 and 10). The Bank will monitor the Companies’ environmental and social performance for the lifetime of the loan through annual environmental and social reporting and via periodic site visits. The Companies 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. Schwarz Finanz und Beteiligungs GmbH & Co. KG Sekretariat Finanzen Stiftsbergstr. 1 D-74172 Neckarsulm Germany