Profi Rom Food Secures €20 Million in Supply Chain Financing
Deal News | Jan 14, 2025 | CEE Legal Matters
In a landmark move, the European Bank for Reconstruction and Development (EBRD), collaborating with Kinstellar and Sullivan & Worcester, has partnered with Banca Transilvania to support Profi Rom Food's supply chain financing program. This initiative marks EBRD's first foray into supply chain financing in Romania. EBRD will mitigate local currency risk by backing up to €10 million, effectively expanding the financing program to €20 million through a shared-risk model. Profi Rom Food, a leading Romanian retail chain with 1,750 stores under the brands Super, Go, and Loco, will channel the funds into improving its supply chain and providing accessible working capital solutions for its suppliers. The legal advisory on this transaction was spearheaded by Kinstellar's team, including Special Counsel Magdalena Raducanu and Managing Associate Razvan Constantinescu.
Sectors
- Retail
- Finance and Banking
Geography
- Romania – Profi Rom Food operates within Romania, and this transaction represents EBRD's first supply chain initiative in the country.
Industry
- Retail – Profi Rom Food operates 1,750 retail stores in Romania, making Retail their primary industry.
- Finance and Banking – The involvement of the European Bank for Reconstruction and Development and Banca Transilvania in financing indicates a focus on Finance and Banking.
Financials
- €20 million – Total supply chain financing provided to Profi Rom Food, including EBRD's €10 million in local currency risk.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Profi Rom Food | Target Company | Company | A Romanian retail chain with 1,750 stores operating under the brands Super, Go, and Loco. |
| European Bank for Reconstruction and Development (EBRD) | Bidding Company | Company | An international financial institution supporting projects in central and eastern European countries, now involved in a supply chain financing initiative for Profi Rom Food. |
| Banca Transilvania | Other Company | Company | A financial institution partnering with EBRD in the financing program for Profi Rom Food. |
| Kinstellar | Legal Advisor | Company | A law firm providing legal advisement for EBRD's financing initiative. |
| Sullivan & Worcester | Legal Advisor | Company | Providing legal assistance alongside Kinstellar for the EBRD financing deal. |
| Magdalena Raducanu | Special Counsel | Person | Special Counsel at Kinstellar involved in advising the supply chain financing transaction. |
| Razvan Constantinescu | Managing Associate | Person | Managing Associate at Kinstellar involved in the transaction. |
| Alexandra Sofineti | Associate | Person | Associate at Kinstellar involved in advising the transaction. |
| Ioana Moldoveanu | Associate | Person | Associate at Kinstellar involved in the transaction. |