EBRD completes syndication of Konzum loan

By EBRD  Press Office

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The EBRD has completed the syndication of the €50 million loan to Konzum, the Agrokor-owned leading retailer in Bosnia and Herzegovina, to finance the company’s regional expansion and strengthen its capital base.

The loan was subscribed by EBRD, Zagrebačka banka d.d., part of the UniCredit Group Privredna banka Zagreb d.d., part of Intesa Sanpaolo and Hypo Alpe-Adria-Bank d.d.

The proceeds of the syndicated loan will enable Konzum to open new stores in smaller towns of Bosnia and Herzegovina and to restructure its balance sheet.

This is the second successful syndication in the agribusiness sector recently completed between the EBRD and Agrokor.

In 2008, the Bank successfully syndicated a €70 million loan for Idea, Agrokor’s Serbian subsidiary, €35 million of which was subscribed by Alpha Bank A.E. of Greece.

“These successful syndications demonstrate that even in the current challenging market circumstances there are commercial banks with liquidity and appetite to support their core clients in eastern Europe when the right structure and terms are proposed”, said Gilles Mettetal, Director of the Agribusiness Team at the EBRD.

“The long term arrangement, signed under competitive terms even in today’s tough market environment, will be a great backbone in our efforts to advance considerable improvements in our Bosnian food retail business. With the support of our partner banks we continue to implement the highest standards in our operations and continue to deliver exceptional results. These efforts will enhance the entire food sector in the region and will be a step further in consolidation and development of the regional food retail market”, said Mr Ivan Crnjac, Executive Vice President for Strategy and Capital Markets in Agrokor.

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