Eurotorg, Belarus' biggest retailer, has announced a €20 million loan agreement with the European Bank for Reconstruction and Development (EBRD).
The loan will enable Eurotorg to reduce its average cost of debt and extend its repayment schedule, and is part of the company's ongoing drive to optimise its debt profile.
“This agreement with one of the world’s leading international financial institutions once again underscores Eurotorg’s strong standing as a high-quality borrower with a robust strategy, efficient business model and significant potential for future growth," said Andrey Zubkou, CEO of Eurotorg.
“Today’s loan agreement marks a logical next step for the Company following our successful debut Eurobond in October 2017, and also highlights the growing attractiveness of the Belarusian market for investors.”
Working Hand In Hand
As well as the loan agreement, Eurotorg intends to work alongside the EBRD on a comprehensive plan to strengthen its corporate governance.
“The EBRD is pleased to support the operations of Eurotorg, a leading food retailer in Belarus and our long-standing partner," commented Alex Pivovarsky, who heads up the EBRD office in Belarus. "We hope that our funding will help the company continue to expand its offering to the benefit of millions of customers across the country.”
In its first quarter results, published in May, Eurotorg posted a 7.1% increase in like-for-like sales, following a 'substantial improvement' in store traffic and high growth in average transaction level.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
