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EBRD loan to boost production and quality at Armenia's largest brandy producer
The European Bank for Reconstruction and Development (EBRD) signed today a US$ 20 million (€23 million) medium-term loan with Yerevan Brandy Company (YBC), the largest Armenian brandy producer and a subsidiary of Pernod Ricard S.A. The financing aims to boost the production and quality of Armenian brandy, one of the most promising sectors of the Armenian export economy.
"The EBRD is happy to support a successful export-oriented company in a domestic economic environment that is difficult but improving thanks to companies such as Yerevan," said Hans Christian Jacobsen, Director for Agribusiness at the EBRD. "We’re especially happy to be supporting the Armenian agribusiness sector".
Mr Jacobsen added that the project demonstrates the success of the EBRD’s continuing partnership with Pernod Ricard, with whom the Bank previously co-invested in the Georgian Wines and Spirits company in 1999.
The loan will help YBC improve quality standards at all its production facilities and selectively increase production capacity. It will also help strengthen the company’s balance sheet by replacing short-term debt with long-term debt to finance spirit stocks and address permanent working capital requirements.
Mr. Pringuet, General Director of Pernod Ricard, said: "This loan agreement reflects the strong commitment of Pernod Ricard to the development of YBC. The financing will assist the company in improving its brandy quality, selectively expanding its production capacity and developing new markets for its sales."
YBC dates to 1887, when the Ararat Wine and Brandy Factory was created. Pernod Ricard acquired YBC from the Armenian government in May 1999. YBC enjoys a strong recognition under its Ararat brand name, as the leading premium brandy player in the Russian market and elsewhere across the Commonwealth of Independent States.
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