Summary of Proposed Investment
Project Number
11293
Company Name
RAMENKI, OOO
Date SPI Disclosed
Mar 1, 2002
Country
Russian Federation
Industry
Tourism, Retail and Property
Projected Board Date
Apr 15, 2002
Status
Completed
Sector
Retail (Including Supermarkets, Grocery Stores, etc.)
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : May 23, 2002
Signed : Oct 17, 2002
Invested : Nov 19, 2002
Project Description
Founded in 1997, Ramenka has established itself as one of Moscow''s largest retailers. Operating under the name Ramstore, the company currently owns and operates three hypermarkets/mini-malls and six supermarkets. Together the hypermarkets and supermarkets have approximately 27,410 square meters of retail selling space, and 25,850 square meters of leasable retail space.
The purpose of the project is to bring Ramenka''s value proposition, which consists of affordable pricing, convenient location, pleasant shopping environment and wide assortment of goods, to a larger number of Moscow consumers. In addition, the project will increase the amount of available retail space in Moscow, which has had the least amount of per capita retail space among all European capitals.
The implementation of the project will result in a significant developmental effect. This will include: considerable managerial expertise transfer in the areas of inventory management, marketing, and sales techniques; a switch to more efficient retail formats; a further strengthening of the local distributors, wholesalers and primary food processors (at present Ramenka is sourcing approximately 60% of its product from the local market, working closely with domestic suppliers to ensure a consistent supply of high quality products); an important demonstration effect for retailers in Moscow and Russia more generally; the creation of approximately 900 new jobs for Russian nationals and the doubling of many new jobs in up and down stream activities; and availability of lower-cost, high quality foodstuffs and other consumer goods.
IFC’s role in the project will be to provide long-term debt financing in a difficult business environment, and to assist Ramenka in mobilizing a US$30 million B loan, one of very few such transaction to be undertaken in Russia since the 1998 crisis, and among the first syndicated loans in Russia under the guarantee of Turkish sponsors.
The purpose of the project is to bring Ramenka''s value proposition, which consists of affordable pricing, convenient location, pleasant shopping environment and wide assortment of goods, to a larger number of Moscow consumers. In addition, the project will increase the amount of available retail space in Moscow, which has had the least amount of per capita retail space among all European capitals.
The implementation of the project will result in a significant developmental effect. This will include: considerable managerial expertise transfer in the areas of inventory management, marketing, and sales techniques; a switch to more efficient retail formats; a further strengthening of the local distributors, wholesalers and primary food processors (at present Ramenka is sourcing approximately 60% of its product from the local market, working closely with domestic suppliers to ensure a consistent supply of high quality products); an important demonstration effect for retailers in Moscow and Russia more generally; the creation of approximately 900 new jobs for Russian nationals and the doubling of many new jobs in up and down stream activities; and availability of lower-cost, high quality foodstuffs and other consumer goods.
IFC’s role in the project will be to provide long-term debt financing in a difficult business environment, and to assist Ramenka in mobilizing a US$30 million B loan, one of very few such transaction to be undertaken in Russia since the 1998 crisis, and among the first syndicated loans in Russia under the guarantee of Turkish sponsors.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Deha Sen
121552, Moscow, Yartsevskaya Street, 19
121552, Moscow, Yartsevskaya Street, 19