Project description
and objectives:
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The EBRD will invest up to USD 7.5 million in the capital of ZAO Viatra,
fourth largest street-banner operator in Moscow. The funds will be used to
make acquisitions of new sites and their build out and/or acquire stakes in
the Russian street-banner operators(s).
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Transition impact:
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The proposed project will facilitate restructuring and consolidation of the
Moscow street banner segment of outdoor advertising industry.
By providing equity funding for expansion of the network of a medium-sized
street banner operator in Moscow, the Bank will support further restructuring
and consolidation of the outdoor advertising sector in Russia and expansion of
the overall advertising industry in the country.
Advertising promotes competition, access to information, and is a key element
of any modern market economy. In particular, the Project will support further
development of an efficient outdoor advertising infrastructure, which is
attractive to companies operating in Moscow and intend to advertise
efficiently their products and services in the whole the city area.
The Bank’s participation as an equity investor in a locally-owned,
small-to-medium-size Russian company will facilitate introduction of high
standards of corporate governance and business conduct.
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The client:
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ZAO Viatra (the “Company” or Viatra) is a closed joint-stock company
incorporated in Russia in 2000. With 103 high-quality sites in and around
central Moscow, Viatra is the fourth largest street-banner operator in the
city. The Company provides outdoor advertising services to advertising
agencies and individual clients under the “Citygraphics” brand name.
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EBRD finance:
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Up to USD 7.5 million equity financing.
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Total project cost:
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USD 9.92 million.
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Environmental impact:
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Screened C/1. There are unlikely to be any significant environmental issues
associated with this project. The environmental due diligence conducted for
the project confirmed that the Sponsor is in compliance with relevant
environmental, health, safety and labour regulations for its outdoor
advertising operations. The Sponsor will be required to comply with Russian
and EU environmental, health, safety and labour standards and requirements as
well as to submit to the Bank an annual environmental report.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Alexander Berlin, Managing Partner
26, bld. 1, Nikoloyamskaya Str.
Moscow,
109240
E-mail: info@citygraphics.ru
Web site: www.citygraphics.ru
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EBRD contact:
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Laure Blanchard, Operation Leader: blanchal@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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