Jeronimo Martins SGPS SA is a Portugal-based group engaged mainly in the food retail business. The Group focuses on distribution and sale of food and other consumer good products, employing more than 100,000 people across 3 countries – Portugal, Poland and since 2013, Colombia – with an annual revenue of € 16.2 billion and an EBITDA margin of 5.7%, as of FY17. The Group owns a portfolio of brands in these countries, including Biedronka and Hebe in Poland; Pingo Doce and Recheio in Portugal and Ara Tiendas in Colombia.

The Group is listed in the Lisbon stock exchange (PSI-20) since 1989 and is controlled by a family holding – Sociedade Francisco Manuel dos Santos, SGPS, SE – that owns 56.1% of the share capital.

 The next two years of investment in Colombia is estimated between €500-600 million. IFC proposes to provide an A loan of up to US$93 million in local currency to partially finance this investment plan.     

 Investments under the Project can be made in small and large cities throughout Colombia.  

 This is a Category B project according to IFC’s Policy on Social and Environmental Sustainability because a limited number of specific environmental and social impacts that may result can be avoided or mitigated by adhering to generally recognized performance standards, Environmental, Health and Safety and Social (EHSS) general guidelines or design criteria as is described in the following sections. Because this is an investment in a corporate entity to support its food retail operations further expansion in Colombia, the key EHSS issues associated with this investment include: (i) assessment and management of environmental and social risks and impacts related to the operation of retail stores and storage of products at the distribution centers; (ii) labor and working conditions; (iii) life and fire safety; (iv) occupational health and safety (OHS); (v) solid waste management; (vi) water conservation and (vii) energy efficiency.