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EBRD supports Bulgarian retail chain expansion
€14.5 million to help build 6 regional outlets; support local producers
Shoppers in the Bulgarian cities of Varna and Bourgas on the Black Sea coast will gain more access to a wide variety of good quality food products at competitive prices following €14.5 million of EBRD finance for Boliari EAD, owner of the Piccadilly retail chain.
A €12 million loan and €2.5 million equity investment will help the company strengthen its financial resources and build six new supermarkets along the eastern coastline. A portion of the loan will help improve corporate governance and transparency, such as through the introduction of a two-tier board. A third of the seven-year loan has been syndicated to Austria’s Raiffeisen Zentralbank Österreich Aktiengesellschaft, which is also providing financing in parallel via its Bulgarian subsidiary.
Hans Christian Jacobsen, EBRD Director for Agribusiness, said Boliari's expansion will benefit consumers by expanding a network of stores that offer a wide mix of foods at competitive prices. At the same time, it will offer reliable market outlets to farmers and local agro-processing enterprises. Finally, the strengthening of the company itself will support the community through both employment opportunities and by selling locally produced goods, he added.
The EBRD has invested more than €2.3 billion for 211 projects in the agribusiness sector across its countries of operations. The Bank views retail commerce as vital to a successful market economy and to this end will support more retail companies in south-eastern Europe.
After opening the first Piccadilly supermarket in 1995, the company now has four outlets on the Black Sea coast and employs more than 600 staff. George Papourov, Managing Director of Boliari, said the EBRD financing comes at a time when Boliari is aiming to strengthen its position as a leader in the Bulgarian retail sector. “This long-term financing is very important because it will support our expansion plans. In the future we may well become a national player if we manage to keep our strong customer service focus and react to market changes such as consolidation or entry of strategic players,” Mr Papourov said.
John Chomel Doe, EBRD Director for Bulgaria, said Boliari's plans for expansion are a sign of up and coming Bulgarian companies developing in regions beyond Sofia, successfully combining international industry best practice with local market expertise. The EBRD is the largest investor in Bulgaria having invested more than €920 million in 66 projects.
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