The European Bank for Reconstruction and Development (EBRD) is considering providing up to €21 million to support retailer Bingo’s further expansion in Bosnia and Herzegovina.
The senior secured loan will be provided in a parallel financing structure with Raiffeisen Bank dd BiH and Sberbank BH dd, with each providing €14 million.
Specifically, the EBRD would support the acquisition by Bingo of smaller competitors, leading to a consolidation in the fragmented local retail sector.
The EBRD’s financing will also support Bingo’s investments in energy efficiency and sustainable resource investments, leading to improved sustainability performance of retail outlets.
The loan is pending final review on May 27 and the total project is worth €49 million.
Bingo is an existing client of the EBRD and has been the subject of environmental and social due diligence in the context of previous projects.
Founded in 1993 in Tuzla, today Bingo is one of the largest and most successful private companies in Bosnia with 156 stores, ranking as the country's second largest retailer behind recently merged peers Konzum and Mercator. The company is solely owned by local businessman Senad Dzambic.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic