Romanian supermarket and convenience store chain Profi, controlled by the investment fund Mid Europa Partners, contracted from the European Bank for Reconstruction and Development a RON77.5mn (€15.7mn) senior unsecured five-year loan, including a 2.5-year grace period, according to an EBRD statement.
The loan will support the financing of the company's capex and permitted acquisitions programme in 2021-2025, consisting of new stores opening, refurbishments and warehouse investments. Profi currently operates over 1,400 stores locally. Around 400 are operated under franchise by small entrepreneurs, and the company plans to accelerate its expansion through stores franchised to entrepreneurs.
The company wants to open several hundred stores across the country through this system. The retailer announced plans to open 200 new stores per year on average and become the second-biggest player on the local market by 2024.
For comparison, in 2020, Profi opened 237 new stores ending the year with 1,404 units. From 67 stores in 2010, Profi has grown to be the local network with the broadest geographical coverage. The retailer has more than 22,000 employees.
In 2017, EBRD, invested alongside Mid Europa Fund IV, in a €25mn equity stake to further support the expansion of the network.
Related Articles
MBH Bank Tier 2 bond sale oversubscribed 3.5 times
Hungary’s MBH Bank has completed a successful €200mn Tier 2 bond issuance amid strong investor appetite. The ten-year notes, callable after five years, are priced with a 6.875% coupon following ... more
IMF says Azerbaijan’s banking sector stronger but systemic vulnerabilities persist
The International Monetary Fund (IMF) has concluded that Azerbaijan’s financial system has made considerable progress in strengthening resilience since the 2015 oil price shock and 2020 COVID-19 ... more
Azerbaijan’s banking sector assets reach AZN27.88bn with a 2.55% NPL ratio in March 2025
The Azerbaijani banking sector has demonstrated remarkable resilience and steady growth in recent years, despite global economic challenges, according to the latest central bank ... more