Eurotorg is the largest food retailer in Belarus, with 438 stores throughout the country (as of January 1, 2016) and a total trade area of 256,500 square meters (“sqm”). The company is a multi-format chain which operates five store formats ranging from small convenience stores to hypermarkets, all under the brand name “Euroopt”. The company has an established nation-wide logistics system with 6 distribution centers and satellite warehouses for total warehouse space of 108,000 sqm. The company is owned by private individuals.

Total project cost is estimated at US$291 (2016-2019) million, including approximately US$91 million for new store openings and US$200 million in refinancing. The proposed IFC financing is an equity investment of up to $55 million.

The company is headquartered in Minsk, Belarus with stores located throughout the country. Investments will be made throughout Belarus.

(i) Benefits to consumers: Through the expansion of its retail chain, the Group will provide access to a more diverse selection of high-quality, affordable products to a broader consumer base.

(ii) Supply chain development: The Group''s expansion will (a) increase the number of its local suppliers, (b) provide additional sales channels for local producers and importers, and (c) contribute to improvements in efficiency and operating standards throughout the supply chain.

(iii) Employment generation: The project will provide additional direct employment for approximately 3,000 people, 80% of whom are expected to be women.

(iv) Best practice transfer: The project is expected to facilitate the transfer of modern retail techniques to Belarusian regions and to enhance the efficiency of the supply chain in the country. The project will also create a standard for employee training and development across the country.

(v) Demonstration effect: The project will have a demonstration effect by encouraging other companies in the region, as well as Western investors, to pursue investment opportunities in Belarus as the country seeks to improve its business climate and facilitate greater inflows of foreign direct investment. In addition, the project will have a demonstration effect for private sector activity in general by showing the capacity of a private sector company to effectively and professionally meet the needs of the population in a predominantly state-dominated economy.

(i) Experience in food retail: IFC will share global best practices in food retail with the company as it expands its in-store and e-commerce businesses.

(ii) Diversification of funding resources: IFC''s investment will increase the company''s visibility, and assist it in further diversifying its financing sources and attracting additional rounds of financing in subsequent years from a broader base of international banks.

(iii) Strengthening of balance sheet: Not readily available in the local market, equity financing from IFC will strengthen the company''s balance sheet, thus improving the sustainability of the company''s operations.

(iv) Fostering long-term partnership and global presence: IFC will establish a long-term relationship with the leading retailer in Belarus, supporting a competitive and standard-setting client investing a systemically strategic sector.

This is a category B project according to IFC’s Policy on Environmental and Social Sustainability in light of the limited number of specific impacts that may occur. These impacts can be avoided or mitigated by adhering to generally recognized performance standards, procedures, guidelines or design criteria.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.