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 RON 77.5 mln (EUR 15.7 mln) senior unsecured 5-year loan, including a 2.5- year grace period.

The loan will support the financing of the company's CapEx and permitted acquisitions program in 2021 - 2025, consisting of new stores opening, refurbishments and warehouse investments.

Profi currently operates over 1,400 stores locally (some 400 operated under franchise by small entrepreneurs) and plans to accelerate 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 a EUR 25 million equity stake to further support the expansion of the network.

(Photo courtesy of the company)

andrei@romania-insider.com