IFC Financing Supports the Development of Ukrainian Food Retail Chain
In Washington, D.C.:
Carmen Powell
Phone: +1 (202) 473-4982
E-mail: CPowerll@ifc.org
In Moscow:
Nezhdana Bukova
Phone: +7 (465) 411-7555
E-mail: NBukova@ifc.org
London, October 6, 2008—IFC, the
private sector arm of the World Bank Group and Emerging Europe Growth Fund
(EEGF), a private equity fund managed by Horizon Capital and investing
in Ukraine, today signed an equity investment agreement to each invest
US$15 million in equity in Evrotek Group PLC, the holding company
for a recently formed Ukrainian food retail chain operating under the trade
name Fresh. The US$30 million investment will help the company with its
expansion plans aimed at developing a modern food retail chain operating
in Ukraine.
“I am very pleased about IFC’s investment in the project as part of the
Investor Consortium. The Investors bring know-how, international
best practice advice, and of course needed financing to the project,”
said Mikhailo Veselsky, Evrotek’s Chief Executive Officer.
Evrotek Group PLC entered the food retail chain market in 2006 and is one
of Ukraine’s newest retail store chains. The company’s expansion plan
entails a total of 58 stores by 2010.
The success of the Fresh chain is important to the Ukrainian economy. The
project will have a demonstration effect to the local retail sector of
modern retailing methods. The project’s improvement and expansion of local
food supply chains will have a positive effect on the development of Ukraine’s
agribusiness sector, in keeping with IFC’s strategy for Ukraine Local
people will benefit from lower consumer prices and better access to quality
goods The project will also open employment opportunities for approximately
6000 people.
“IFC’s investment in the project will
support the expansion and development of Ukraine’s retail sector. IFC’s
involvement will also ensure compliance with its environmental and social
performance standards, in particular with regards to safety and human resource
management,” said Dimitris Tsitsiragos, IFC Director for Global Manufacturing
and Services.
Nena Stoiljkovic, IFC Director, Central and Eastern Europe, added, “IFC
continues to support the growth of Ukraine's private sector through developing
partnership with local companies. IFC's focus in Ukraine is on the agribusiness
sector and all the elements of the value chain, including food retail.
We are confident that our investment in Evrotek Group PLC will enable the
company to raise its retailing practices up to international standards
and improve access of consumers to quality goods and better retail services.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
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