17 April 2007 - The EBRD is providing a $97.2 million loan to OJSC “Slavutich Beer and Non-Alcoholic Beverages Plant”, one of the largest breweries in Ukraine, owned by Baltic Beverages Holding (BBH), a joint venture between Carlsberg and Scottish & Newcastle.
This second loan to Slavutich is a result of the long term regional cooperation between BBH and the EBRD. The loan will be used for further upgrades and expansion of Slavutich plants as well as the restructuring of the balance sheet. $48.6 million of the loan amount has been syndicated to Danske Bank.
The planned investments in Slavutich plants in Kyiv and Zaporizhzhia will lead to an increase the total production capacity to 5.5 million hectolitres of beer. Part of the loan will be used to introduce an innovative PET packaging, which will significantly increase shell life of PET packaged beer. Slavutich is also planning to expand the range of packaging of individual brands.
Gilles Mettetal, EBRD Director for Agribusiness, said the Bank is traditionally supporting foreign investment in Ukraine’s agribusiness sector. BBH is one of the leading international companies willing to invest in the region and the EBRD is happy to continue its successful cooperation with BBH, which started in 1999, he added.
“We are proud that such a well-respected institution as the EBRD trust us and continues developing Ukraine’s economy, despite the difficult business climate and the political instability in the country”, said BBH Ukraine Director General Peter Chernyshov.
The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of 1 January 2007 it had committed €2.87 billion through more than 130 projects. In the agribusiness sector alone, the EBRD has committed €4.4 billion in 315 projects across central and Eastern Europe and the Commonwealth of Independent States.