LONG-TERM PARTNERSHIPS WITH EMERGING PLAYERS

Start Small, Grow Big:

Rubliovskiy Retail Chain
IFCs long-term financing is helping Rubliovskiy build a growing network of grocery stores and distribution centers in
Belarus, where consumer demand is growing, but where there is limited international finance availability for retail projects
and an underdeveloped retail sector. The addition of more supermarkets and a sophisticated logistics network to supply
them will give consumers more options, increasing access to affordable, high-quality food and introducing the modern,
convenient, one-stop-shopping model to the Belarus market. Such efforts support economic expansion in middle-income
countries, creating jobs and building infrastructure while helping the company improve efficiencies, deepen its local
supply chains, and keep prices competitive for consumers across the income spectrum.

Early 1990s: Company sets up shop as a wholesaler and distributor,

ultimately becoming the nationwide distributor for leading international brands including Bonduelle, Danone, Frito Lay, Nestle, Pepsi Cola,
Unilever, and Wrigley. Its modern warehousing and distribution operations introduce a new, safer and more efficient approach to grocery
supply chain management in a market dominated by small, independent shops and bazaars
2003: Company opens its first grocery store in Minsk, under the name
Rubliovskiy, setting a new course for grocery retailing in the country
with its one-stop shop in the easy-to-access center of the city.
2004: Building on the strong financial performance of the first store,
the company opens eight additional stores.
2007: Rubliovskiy becomes a major force in grocery retailing in the country, with 20 supermarkets and convenience stores in Minsk, all
located in easily-accessible areas.
Today:. Company focus on locally-sourced goods has broadened opportunities for local agricultural producers and suppliers.
Rubliovskiys successes are clear: the company holds 70 percent of the distribution market share of the imported grocery in the country and its grocery stores serve an estimated 65,000 customers each day. Currently, Rubliovskiys network of grocery stores consists of
25 supermarkets in Minsk.
Going forward: The $110 million expansion includes:

20 new Rubliovskiy supermarkets in Belarus six major cities

6 new distribution centers in Belarus

increased efficiency of the present logistics business

estimated completion of all phases by 2012

$26 million in long-term financing (combination of quasi-equity and debt)

Guidance and technical advice on diversification and upgrading operations to meet international standards

Support for improvements in environmental and social policies, including labor practices

Assistance on the design of a comprehensive and cost-effective insurance program that provides robust protection for
their changing business model

LONG-TERM PARTNERSHIPS WITH EMERGING PLAYERS

Increased middle- and low-income consumer access to high-quality, affordable

food with accessible, city-center locations
1,600 direct jobs, and other indirect jobs for construction workers, suppliers and
distributors
Expanded local suppliers network and complementary economic development
Enhanced food safety
Introduction of modern food retailing standards into the market

Modern grocery retailers like Rubliovskiy can help keep food costs down, expand access to high quality food and contribute more
broadly to economic development in middle-income countries and in very poor countries. IFCs grocery retail investments focus on
the full scope of the food value chain: from guidance on ways to increase agricultural productivity and quality to investment in modern
retail operations that offer economies of scale with associated price reductions; from food processing and packaging to logistics and
warehousing.

In Ukraine, Evrotek is building a chain of modern grocery stores, called Fresh, supported by IFC financing and guidance on
strengthening relationships with small local suppliers and agribusinesses.

In Sub-Saharan Africa, IFCs $7 million investment will enable Marina Market to open stores in Niger, Burkina Faso and Ghana.

In Azerbaijan, IFC is helping to build a grocery store chain under the brand name ALMALI, to provide a reliable source of quality,
affordable goods for middle and lower-middle income consumers.

In Guatemala and El Salvador, IFC provided financing for local grocer La Fragua, for an expansion into rural, isolated areas where
peoplemostly womenhad to travel long distances to find food. The expansion increased availability of stably-priced, safelypackaged food to rural areas and created close to 2,000 jobs with good benefits and higher than average wages, primarily for
women.

Our current Retail portfolio of over $1 billion represents investments in 35 companies and 27 countries. IFCs sectoral expertise, regional
knowledge and leadership in sustainability offer significant value to our clients, in addition to our full suite of financial products and
services.

For more information about IFCs financial products and advisory services in the retail sector, please contact:
Olaf Schmidt 52-55-3098-0233 or oschmidt@ifc.org
Brendan Dack 1-202-458-9757 or bdack@ifc.org

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2009