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Društvo za trgovija na malo LIDL SEVERNA MAKEDONIJA DOOEL

Customer

Društvo za trgovija na malo LIDL SEVERNA MAKEDONIJA DOOEL (Lidl North Macedonia) is part of the Schwarz-Group, a food retailer, founded in 1973 in Germany. It is currently setting up its business in North Macedonia. Schwarz-Group is one of the biggest food retailers in the world and operates under the brands Kaufland (supermarket) and Lidl (discounter) in 27 countries in Europe as well as the USA.

Funding Objective

The engagement comprises of a EUR 80 million long-term loan. The funds will be used for the construction of new Lidl stores and warehouses in North Macedonia.

Reasons for financing

Financing Lidl’s market entry into North Macedonia allows DEG to also assist Lidl in developing new and innovative projects. The project supports the German private sector to grow internationally and to provide long term investment in emerging markets.

Via this investment DEG supports the creation of further jobs over the next years. Local income and taxes will improve as a result as well as food supply reliability for the community. Furthermore, local producers will be supported to grow and become core suppliers of Lidl. The financing thus contributes in particular to the SDGs “Decent Work and Economic Growth” (SDG 8), “No Poverty” (SDG 1) and “Good Health and Wellbeing” (SDG 3).

Providing a long term financing gives Lidl the flexibility to grow its business sustainably. Furthermore, LIDL & DEG will cooperate in strategic, impact-related ESG topics from an early stage on.

The investment contributes to DEG’s strategy of financing German clients with a high commitment for climate transformation and impact generation.

Region Europe / Caucasus
Country North Macedonia
Sectors Services
Signing Date 11-2024
Funding EUR 80 Million
Investment Instrument Debt
Source of Funding DEG's own funds
Environmental & Social Category
Risk categorization on environmental and social impacts:
A = High risk; Investments with significant potential adverse social or environmental impacts that are diverse, irreversible or unprecedented. These impacts cannot be mitigated or remedied or only at significant costs.
B+ = High Medium Risk; Investments with limited potential adverse social or environmental impacts that are site-specific addressed through mitigation measures, but having specific features which can have potential significantly more adverse social or environmental impacts.
B = Low Medium Risk; Investments with limited potential adverse social or environmental impacts that are site-specific and readily addressed through well-known mitigation measures.
C = Low Risk; Investments with minimal or no adverse social or environmental impacts.
FI-A = Financial Institutions High Risk; Financial Institutions with business activities or projects with significant potential adverse social or environmental impacts or risks.
FI-B =Financial Institutions Medium Risk; Financial Institutions with business activities or projects with limited potential adverse social or environmental impacts or risks.
FI-C =Financial Institutions Low Risk; Financial Institutions with business activities or projects with minimal or no adverse social or environmental impacts or risks.

B/B
SPV / Holding name and country of incorporation / domiciliation SG Finance and Treasury Limited, Ireland
Website of the customer https://www.lidl.de/
Further investments by year 2025;

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