The European Bank for Reconstruction and Development (EBRD) joins forces with Mid Europe Partners in order to support the expansion of the network of Profi Rom Food LLC supermarkets in Romania, with a capital investment of 25 million euro, reads a press release of the European Bank sent to Agerpres on Thursday.
Profi owns 523 stores in over 272 localities in Romania. EBRD financing will support the expansion of the retail network, especially in the country’s smaller cities.
“With our help, Profi will open hundreds of new stores, both in large localities, as well as in the small ones in Romania, offering customers the opportunity to buy affordable food and helping the local economy by creating new jobs. The beneficiaries of this expansion will be customers and also local manufacturers who will have more options to sell their products,” declared Matteo Patrone, the Regional Director for Romania and Bulgaria.
This new funding follows the previous one, also worth 25 million euro, representing an EBRD loan to support business growth by improving competitiveness. Competitiveness is one of the six transition qualities that EBRD supports in the countries where they operate; other key elements are: low impact on the environment, resilience to external shocks, good governance, integration and inclusion.
“We are pleased that the EBRD will be our partner in Profi Romania. One of the most important goals of the Profi project is expanding in small localities. We believe this will be beneficial to the local communities, both through the creation of jobs as well as by providing affordable food. We are also excited by the opportunity to support Profi’s management to continue this success story,” stresses Andrej Babache, Director of Mid Europe.
“Profi has a successful track record in winning new customers by offering fresh, affordable products in modern stores across the country. The company has a huge growth potential in the coming years in Romania, including in smaller localities. We are pleased that EBRD joins Mid Europe in Profi shareholding and we believe that the EBRD know-how in the private sector development in Central and South-Eastern Europe will help us in our future projects,” according to Daniel Cirstea, CEO of Profi Rom Food.
ERBD is one of the largest institutional investors in Romania. The Bank has so far invested over 7.3 billion in 384 projects and has mobilized over 14 billion euro from other financing sources.