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JSC The Seventh Continent

Russia | Consumer Staples

Identification Code:: OP/07/0638
Total Operation Cost:: — USD
Maturity:: 36 months
Operation Status:: BSTDB Approved Amount – Approval Date

36.000.000 USD – 16 Jun 2007
: BSTDB Signed Amount – Signed Date

36.000.000 USD – 31 Jul 2007
: Status:
Completed
Description and Purpose of the Operation:: Financing the implementation of the Client's development plan for 2007-2008, including modernization and extension of the retail network of super- and hypermarkets and upgrade of store equipment and IT systems.
Countries of Operation:: Russia (100,00%)
Financial Product:: Loans
Sector:: Consumer Staples
Domain:: Private
Borrower/Client:: JSC "Seventh Continent" was established in 1994 in Moscow and has developed into a leading retail chain of 118 supermarkets and 4 hypermarkets in Russia, mostly located in Moscow, St. Petersburg and Kaliningrad regions. The Company employs about 11,900 people. Market capitalization is over USD 2 billion.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The BSTDB financing will support a leading retail chain in Russia, thus contributing to the development of national retail and food distribution systems and facilitate sales of agricultural products. The extension of the retail network will have important job creation effect in several regions of Russia.
Environmental Classification and Impact:: The Operation is screened according to the BSTDB's Environmental Screening Categories as category B0, with few limited EH&S impacts, which are site specific and readily mitigated. Environmental Assessment revealed that Environmental, Health & Safety (EH&S) implications of the Borrower's retail business (super-, and hypermarkets) are limited and not likely to generate significant impacts. The Borrower is taking appropriate measures to prevent, control and minimize the potential negative impacts, and improve its overall environmental performance, e.g. use of press-compacting devices on site to compact the generated solid wastes thus significantly reducing the waste volumes; use of fat traps in the meat products sections/shops to retain animal fat from the discharged wastewaters; removal from shelves and safe disposal of "soon to expire" food products; strict observance of in-house hygiene standards. The Borrower's super- and hypermarkets operate in strict compliance with EH&S legal requirements in effect in Russian Federation. All its retail markets are equipped with modern fire prevention and safety equipment. During construction and/or refurbishment of its retail chain the Borrower uses energy efficient construction materials with adequate insulation properties, energy efficient lightning and heating. The refrigeration equipment used does not employ any ozone depleting coolants.
Operation Leader:: General Industries, Transport, Tourism 1
E-mail:: gitt1@bstdb.org