Dec. 20 - The European Bank for Reconstruction and Development has provided a $90 million loan to the second largest Ukrainian supermarket operator, Furshet Group, owned by Ukrainian founders with a 20 per cent participation of Auchan Group of France, for the regional expansion of its chain in Ukraine and Moldova. Out of this amount, $30 million has been syndicated to commercial banks.
The EBRD loan will help Furshet Group open new stores across Ukraine, thus bringing the total number of their branded supermarkets to over one hundred from 86 now.
The EBRD loan will also finance the expansion of Furshet’s operations in Moldova where it has recently opened three supermarkets. The project is expected to contribute to the development of modern retail formats, quality products and retail standards especially in regional towns with a population of over 50,000 and where there are only limited modern retail outlets.
Igor Balenko, the Chairman of Supervisory Board of Furshet Group quoted: “We appreciate the fact that the EBRD considered us as a reliable partner and very proud of having such a big transaction with one of the most respectable financial investors. The Group project is to contribute on a daily basis, together with a team of responsible, committed and highly-professional employees, to improving the purchasing power and quality of life of the largest possible number of customers”.
Gilles Mettetal, the EBRD Director for Agribusiness, said: “This is the biggest and most important deal the EBRD has done in the retail sector in Ukraine, and we hope not the last one with Furshet. We are happy to partner with Furshet in their efforts to become the leading food retailer in Ukraine”.
The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of the end November 2007 it had committed over €3.12 billion through more than 156 projects.
To-date the EBRD has signed more than 49 projects in Moldova, investing more than €210 million and mobilising another €155 million from its partners.
In the agribusiness sector alone, the EBRD has committed €4.9 billion in 347 projects across central and Eastern Europe and the Commonwealth of Independent States.