The EBRD and ADM Capital, a private equity fund investing in emerging markets, are supporting the development of Bulgaria’s export-oriented enterprise sector with a financing package for Prista Oil Group BV, an important producer of car lubricants and batteries.
Prista Oil Group operates in over 20 countries, mainly in central and eastern Europe, and more than half of its revenues come from exports.
The financing package comprises €48 million of equity and convertible instruments structured in an innovative way that will allow the company to reorganise its balance sheet. Additionally the EBRD will be providing a €12 million loan to finance Prista Oil Group’s capital investment programme.
This project will enable Prista Oil Group to restructure its shareholding by buying out a minority shareholder, to improve its balance sheet and corporate structure, and to optimise its operational efficiency.
Additionally the EBRD’s financing will support the expansion of Prista Oil Group’s branded network of service centres outside Bulgaria (in Turkey, Romania, Hungary and the Slovak Republic), the installation of new equipment and the upgrade of the corporate IT system.
“Supporting the development of the corporate sector and export-oriented enterprises is one of the EBRD’s key priorities in Bulgaria. We are pleased to partner with ADM Capital and Prista Oil Group and help the company optimise its structure and streamline its operations. The Bank has developed a strong track record to provide long-term debt and equity restructuring solutions for manufacturing firms. This project will demonstrate the benefits of successful restructuring for other corporates in the EBRD region,” said Jean Marc Peterschmitt, EBRD Managing Director for Central and South-Eastern Europe.
Anthony Stalker, Partner and Head of ADM Capital Europe, commented that “this is ADM Capital’s first investment in Bulgaria. In entering new countries we always seek companies with strong and stable market shares and an unwavering commitment from the company’s principal owners. We believe that Prista Oil satisfies all these requirements. We are delighted to be working with the EBRD in this project and we look forward to participating in the growth and development of the group in the years to come.”
“We are delighted to have been able to attract this investment and to join forces with two excellent partners. We believe that this is a validation of Prista’s management team. We at Prista are extremely excited to become ADM Capital’s first investment in Bulgaria, provided alongside the EBRD, and are looking forward to the opportunity that this project will give us to grow our business in the region,” added Plamen Bobokov, Chairman of Prista Oil Group.
Since the beginning of its operations in Bulgaria the EBRD has invested more than €2.5 billion in over 200 projects in various sectors of the country’s economy. With total project value exceeding €8 billion, the EBRD’s funds have helped mobilise over €5.5 billion in co-financing from other sources.