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EBRD supports expansion of Russian retailer Lenta
$50 million loan to finance new regional outlets
With the support of a $50 million loan from the EBRD, the St. Petersburg-based
retail chain Lenta is continuing the rollout of its stores across Russia. The
6-year unsecured loan will help the regional expansion of the company thus
increasing the choice and availability of high-quality products for Russian
consumers. The EBRD provided Lenta with a first $30 million loan in July 2004.
With ten stores superstores, Lenta currently holds a leading position in the
food retail market in St. Petersburg. Twelve stores are under construction,
four of which will open before the end of this year – two in Novosibirsk, one
in Tyumen and one in Astrakhan. The outlets are open 24 hours a day and carry
a wide range of items.
Gilles Mettetal, EBRD Director for Agribusiness, said the Bank was pleased to
continue to be able to support the expansion of Lenta. The company has taken
the best examples from hypermarkets, cash-and-carry and discount stores around
the world and very successfully adapted them for Russia. At the same time,
Lenta’s financial transparency and best-practice corporate governance serves
as a model for the Russian market.
Oleg Zherebtsov, CEO of Lenta, said: “We are grateful to the EBRD for its
continued support in helping Lenta bring a modern retail format to consumers
in the Russian regions. At Lenta, we are committed to making the lives of
Russian’s better by helping them save more when they shop. This loan will
allow us to help bring our new customers throughout Russia a wide selection of
quality products at low prices, create approximately 500 jobs per outlet and
also help Russian producers’ access to new markets.”
The Russian retail sector has become one of the fastest growing sectors of the
national economy. The food retail market is expected to follow the trends of
other countries where conveniently located modern trade formats replace small
shops and open markets. In agribusiness alone the EBRD has to date committed
€4.3 billion in 299 projects across central and Eastern Europe and the
Commonwealth of Independent States.
Lenta Contact:
Katherine Lean
Tel: +7 812 380 6131 x201
Email:
katherine.lean@lenta.com
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