Summary of Proposed Investment
Project Number
7683
Company Name
Bompreco S.A. Supermercados do Nordeste
Date SPI Disclosed
Nov 20, 1996
Country
Brazil
Industry
Tourism, Retail and Property
Status
Completed
Sector
Retail (Including Supermarkets, Grocery Stores, etc.)
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Jan 21, 1997
Signed : Dec 24, 1997
Invested : Jun 22, 1998
Project Description
Summary Of Project Information (SPI)
| Project Name | Brazil-Bompreco S.A. Supermercados do Nordeste (“BSN”) |
RegionLatin America and the Caribbean
Sector
Project No007683
Projected Board DateDecember 30, 1996
Company NameBompreco S.A. Supermercados do Nordeste
Technical Partner and/or Major Shareholders
The Company is currently privately-held by the Paes Mendonça family. The Company has signed a letter of intent with Royal Ahold, a publicly-held Dutch supermarket multinational, to sell 50% of its outstanding shares. Control of the Company will remain with the Paes Mendonça family.
Project Cost Including proposed IFC investment
US$170 million, including an IFC A loan of US$30 million, inclusive of IFC’s proposed quasi-equity investment of US$5 million.
Location of project and Description of site
Four stores will be built in urban areas of Pernambuco state, and one in each the states of Rio Grande do Norte, Paraiba, and Ceara. Three stores will be located in shopping centers, while the others will be free-standing.
Description of Company and Purpose of Project
BSN is the fourth largest supermarket chain in Brazil and the largest in the northeast of the country, where it operates 50 food retail stores and four distribution centers. The project will construct new stores, which is expected to increase annual revenues by over US$300 million and increasing employment by creating 2,670 direct and 7,500 indirect jobs. The project will also modernize existing operations, permitting the Company to provide internationally competitive services to consumers.
Environmental Category and Issues
This is an environmental review category B project. Environmental and occupational health and safety issues include liquid and solid waste disposal, use of non-ozone depleting refrigerants, fire safety measures, and employee training and general safety. The sponsor has been requested to provide information addressing the issues listed above.
The is November 21, 1996 from the Public Information Center.
| Date SPI sent to PIC | November 20, 1996 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
Related ESRS/ERS
