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EBRD lends $20 million to Russia's biggest cosmetics group
5-year loan to Kalina will fund take-overs and new capital investments
The European Bank for Reconstruction and Development is lending $20 million to
OAO Concern Kalina, the leading producer of cosmetics and personal care
products in Russia and the CIS, to finance the acquisition of smaller Russian
competitors, as well as new capital investments.
The Bank has been a shareholder of Kalina for almost three years and is happy
to help the expansion of a dynamic Russian group that has shown commitment to
transparency, good corporate governance and sound environmental management,
said Dragica Pilipovic-Chaffey, Director of the EBRD's Russia Team.
Unlike the highly mature personal care and cosmetics markets in advanced
market economies, the Russian and CIS markets still have large potential for
growth before they reach maturity, Ms Pilipovic-Chaffey added.
In 2000, the EBRD invested $10 million in Kalina's equity through two of the
Bank's regional venture funds that are represented on the Ekaterinburg-based
group's board, Eagle Venture Partners B.V. and Eagle Urals Fund B.V.
The five-year loan will help the consolidation of the sector by funding
Kalina's acquisition plans, a move that will contribute to making the Russian
market more efficient and promote competition with importers. It will also
finance investments in new production lines and the upgrading of existing
equipment.
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