📋 Tender Overview
Location:
Ukraine
Project number:
55648
Business sector:
Agribusiness
Notice type:
Private
Environmental category:
B
Approval date:
04 Mar 2025
Status:
Passed Concept Review, Pending Final Review
English-language PSD published:
07 Mar 2025
Project Description
USD 25 million multicurrency senior long-term loan to the VARUS food retail chain.
Project Objectives
The Project will support VARUS Group's strategy to expand its retail operations in Ukraine.
Transition Impact
ETI score: 70
Resilient:
The Project will be directed toward financing the expansion of the VARUS Group's retail network, contributing to the resilience of the Ukrainian private sector, and addressing risks of maintenance of vital local food supply.
Inclusive:
The Project will help to preserve VARUS's human capital and the livelihoods of its current employees, while boosting employment opportunities and job quality for people with disabilities and other war affected groups.
Client Information
OMEGA LLC
VARUS Group, one of the leading food retail chains in Ukraine, operating 113 stores primarily in the Dnipro and Kyiv regions, with limited presence in Zaporizhzhia and Odessa regions. Omega LLC is the main operating company of the VARUS Group.
EBRD Finance Summary
USD 25,000,000.00
Total Project Cost
USD 53,100,000.00
Additionality
Additionality stems from the following:
Terms: The EBRD financing effectively bridges a financing gap due to adverse market conditions as a result of the war on Ukraine. Conditionalities: The client seeks/makes use of EBRD expertise on higher environmental standards and energy and resource efficiency. Standard setting: Through EBRD's engagement, improvements to the Group's HR policies and practices encountering risks of gender-based violence or harassment at work. Through targeted training on handling and diffusing potentially difficult or risky encounters with customers and co-workers affected by the ongoing war.
Environmental and Social Summary
Categorised B (ESP 2019). Environmental and Social risks associated with renovation and equipment upgrades at existing stores and new leased warehouse are site-specific and can be readily identified and managed through implementation of the Environmental and Social Action Plan (ESAP) which has been agreed with the Group. Environmental and Social Due Diligence (ESDD) has been undertaken internally in line with the EBRD ESD's Response to Impacts of the war on Ukraine and involved a review of the E&S Questionnaire, capex plans and Group documentation.
The Group has some elements of an E&S Management System and the ESAP commits the formalisation of the system consistent with the principles of ISO 14001 and 45001. E&S risks relate predominantly to equipment installation works and the Group is committed to monitor contractor's compliance with Environmental, Health and Safety requirements.
Some limited gaps between the Group's Human Resourc
