Eurotorg LLC, the largest food retailer in Belarus, has announced the signing of a RUB 3.5 billion (€47.4 million) syndicated loan facility agreement with two Russian banks.
The syndicated loan consists of two tranches; a three-year loan of RUB 0.5 billion and a five-year loan of RUB 3 billion.
The structure of the transaction makes it possible for additional lenders to join the facility, Eurotorg said in a statement.
Gazprombank and MKB Bank acted as the mandated lead arrangers and lenders. Gazprombank also acted as documentation agent.
“We are pleased to announce that Eurotorg has closed its second successful Russian capital markets deal in the third quarter of 2019," commented Andrei Zubkou, CEO of Eurotorg. "This transaction marks an important step in diversification of our financing sources and optimising the Company's debt profile."
Zubkou aded that the proceeds will be used for refinancing purposes, as well as the extension of Eurotorg's debt maturity profile.
Ivan Dun, vice president and head of the syndicated and international financing department of Gazprombank, described the loan as a "landmark event", as it is the first syndicated loan for a private corporate borrower in Belarus.
"The bank is already cooperating with Eurotorg and arranged the issue of the company's ruble bonds in July 2019," he said. "Attracting long-term unsecured financing underscores Eurotorg’s strong standing as a reputable, high-quality borrower with a robust strategy, efficient business model and significant potential for future growth.”
Elsewhere, Alexander Kaznacheev, deputy chairman of the management board of MKB Bank, said that the bank has been working with Eurotorg for a long time.
"Previously we provided the company with working capital loan, and acted as an organiser of the company’s bonds issue," he said. "Eurotorg is currently one of the best borrowers in Belarus and a leader in the food retail segment. We are highly interested in continuing our cooperation.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.