EBRD provides 60 million USD for Fozzy Group expansion
21.05.2020 17:38 "Agro Perspectiva" (Kyiv) —
Consumers in Ukraine will have more options to enjoy better and safer shopping standards, following the opening of new food stores by the country’s major retailer, Fozzy Group, supported by the EBRD.
Meanwhile, domestic food producers, including small and medium-sized enterprises, which supply Fozzy Group with groceries, will also benefit from new business opportunities generated by the new stores under the popular Silpo and Fora brands that the group operates.
The Bank’s long-term loan of up to US$ 60 million will contribute to Fozzy Group’s investment programme and will help the Ukrainian food retailer to open or renovate 41 Silpo supermarkets and stores as well as 29 Fora convenience stores. The funds can be disbursed in US dollars, but also in either euros or Ukrainian hryvnias, with the latter option designed to limit currency exchange-related risks.
In the context of the investment programme, Fozzy Group will also launch the first «green» supermarket in Ukraine, which will be fully compliant with Building Research Establishment Environmental Assessment Method (BREEAM) principles for the construction of environmentally sustainable buildings.
The loan is supported by the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme with a grant of US$ 303,600 provided by the Global Environment Facility (GEF). The grant covers energy and resource efficiency improvements in the group’s first «green» store, including heat supply from a ground heat pump, Freon-free refrigerators, onsite renewable electricity generation and waste-reduction activities.
In addition to these objectives and with the help of the EBRD, Fozzy Group will improve its safety management systems for road traffic in accordance with the ISO 39001 standard.
Grant funds for the projects were provided by the Japan-EBRD Technical Cooperation Fund and the EU Neighbourhood Investment Platform.
The EBRD Board of Directors approved in late April the increase of its Resilience Framework to ˆ4 billion. The resources are available to the Bank’s clients to support their urgent liquidity, short-term working capital and trade finance needs and allow them continue their business activities despite the coronavirus pandemic.
The EBRD is the largest international financial investor in Ukraine. To date, the Bank has made a cumulative commitment of almost ˆ15 billion through 466 projects in the country.
Fozzy Group is one of the largest trade industrial groups in Ukraine and a leading multi-format retailer (brands such as Silpo, Fora, Fozzy C&C and Thrash), with over 560 outlets around the country. The group’s businesses also include food production, banking and restaurants, as well as logistics, including a postal delivery operator. Since its establishment in 1997, Fozzy Group has focused on innovative improvements, creating new opportunities for the market and further developing the sectors in which the group operates.