EBRD backs Żabka's expansion of Froo network in Romania

Business Forum
The EBRD has subscribed for PLN 140 million (€33 million) in the debut sustainability-linked bond issuance by Żabka Group, a Polish modern convenience retailer.

The total issuance amounts to PLN 1 billion (€236 million) and will be traded on the Catalyst Alternative Trading System of the Warsaw Stock Exchange.

Żabka Group will direct the proceeds from the bond subscription towards financing its operating costs and capital expenditures in Poland and Romania. This includes supporting the company's recent expansion into Romania with the launch of its Froo brand in 2024.

Under its sustainability-linked bond framework, the group has committed to significant environmental targets. These include reducing the share of virgin plastic in its own-brand packaging by 38% and decreasing its carbon footprint by at least 40% by 2028. The company also aims to increase the sales value of its own-brand food products that promote a sustainable lifestyle.

Żabka Group has a network of over 11,000 stores in Poland, operated primarily under a franchise model. In Romania, the group is looking to reach 50 stores in the first phase of development.

The EBRD has been a key backer of Żabka Group, acting as both a shareholder and provider of debt financing since 2017.

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