Silpo Parent Fozzy Group Obtains Loan Worth $60m From EBRD
Ukraine’s Fozzy Group has received a $60 million loan from the European Bank for Reconstruction and Development (EBRD).
The long-term loan will contribute to Fozzy Group’s investment programme and help the food retailer to open or renovate approximately 41 Silpo outlets as well as 29 Fora convenience stores.
The money will also be used in launching Ukraine's first ‘green’ supermarket, which will be housed in a sustainable building that complies with the principles of the Building Research Establishment Environmental Assessment Method (BREEAM).
The loan also includes a grant of $303,600, provided by the Global Environment Facility (GEF).
It will be used for implementing waste reduction measures and making the ‘green’ store energy efficient.
In addition, Fozzy Group will also enhance its safety management system for road traffic as per the ISO 39001 standard.
The EBRD will disburse the funds in either US dollars, Euros or Ukrainian hryvnias, with the latter option designed to limit currency exchange-related risks.
Fozzy Group is a leading multi-format retailer in Ukraine that operates more than 560 stores under the Silpo, Fora, Fozzy C&C, and Thrash banners.
The group’s other businesses include food production, banking, and restaurants, as well as logistics, including a postal delivery operator.
The EBRD is the largest international financial investor in Ukraine, which has, to date, made a cumulative commitment of almost €15 billion through 466 projects in the country.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.