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A fruitful endeavour for Moldova’s agribusiness
EBRD investment to support expansion of food producer Orhei Vit
The EBRD is providing Orhei Vit JSC, one of Moldova’s leading fruit and
vegetable processing companies, with a comprehensive financing package to
support the company’s diversification and expansion. Under the agreement the
EBRD will make an equity investment of $3.25 million in the company and
provide it with an additional €4.0 million loan.
The finance will support Orhei Vit entering the frozen fruits and vegetables
markets, enabling the company to diversify into high-value frozen products for
the wholesale market. The funds will also be used to finance new equipment,
the refurbishment of existing facilities to set up a new production line and
to satisfy the company’s capital needs.
Looking back on a strong tradition Orhei Vit today holds a 20 per cent-share
of the Moldovan juice market. The company is pursuing an ambitious growth
strategy and moving from producing concentrates and purees to value added
finished products such as juices, canned fruit and vegetables. Orhei Vit is
one of Moldova’s leading exporters and serves the Baltic states, Belarus,
Kazakhstan, Romania and Russia with juices, canned fruit and baby food.
Gilles Mettetal, EBRD Director of Agribusiness, said the Bank sees strong
growth potential for Orhei Vit both on the domestic and international markets.
The EBRD will support the company to diversify its product range and export
range to strengthen its market position. The high reputation of fruit and
vegetable products from Moldova is an asset on which to build the company’s
expansion.
Alexander Bilinkis, General Manager of Orhei Vit, welcomed the EBRD’s funding
as an endorsement of the company and its future plans: “This is evidence of
confidence in Orhei Vit’s business, its transparency and efficiency. We
believe that the project will help Orhei Vit to enter new markets, will
improve its operational and financial results and will work for the welfare of
Moldova, the company and its shareholders”, he added.
The EBRD and Orhei Vit have been partners since December 2004 when the Bank
provided the company with a €2.0 million loan to restore its branch in
Causeni. The project was successfully implemented and the cannery re-started
its operations in September 2005.
To-date the EBRD has committed €4.3 billion in 304 projects in the
agribusiness sector in its 29 countries of operations in central, eastern and
south-eastern Europe and the Commonwealth of Independent States.
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