WASHINGTON, D.C., June 26 -- The International Finance Corporation (IFC) has signed financing agreements for US$10 million with Globi Polish Retailing, Poland's first integrated chain of modern supermarkets, and for US$2 million with Nesky, an automotive parts distribution company in Poland.
The investment in Globi Polish Retailing is to finance expansion of its chain of supermarkets. Globi, which has been in operation since 1991, offers Polish consumers a wide range of quality products at competitive prices in a pleasant shopping environment. Globi's stores are conveniently located in areas of high population density in the Warsaw region.
IFC is providing an equity investment of up to US$10 million for approximately 35 percent of Globi Polish Retailing. GIB Group, Belgium's leading supermarket chain, is Globi's main shareholder and additionally, is provide training for its management and staff.
Nesky will develop a modern distribution system for automotive parts such as batteries, brakes, spark-plugs, and shock absorbers to improve the availability and variety of auto parts in Eastern Europe. Initially, Nesky will market imported parts but eventually the company plans to invest in local manufacturing and in recycling of old batteries.
IFC is providing an equity and quasi-equity investment of US$2 million for the first phase of Nesky's investment program. Echlin, a large US-based automotive parts manufacturer and distributor, will also invest and participate in the development of Nesky. Total project cost is estimated at US$13 million.
"Globi Polish Retailing and Nesky will introduce to Poland efficiencies in distribution channels that have developed over a long time in Western Europe," said Edward Nassim, Director of IFC's Europe Department. "These efficiencies will result in better prices and product selection for consumers and improved market access for producers."
IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
