Development institutions jointly support expansion of Georgian beverage company
The European Bank for Reconstruction and Development (EBRD) is arranging a €18.5 million syndicated loan for Global Beer Georgia (GBG), to support the construction and operation of a greenfield brewery.
The syndicated financing package consists of an A loan of €6.2 million for the EBRD’s own account and a B loan of €6.2 million provided by the Dutch development bank FMO, while the German development bank DEG will act as a parallel lender providing €6.2 million.
Global Beer Georgia’s planned new brewery will produce both locally developed and international beer brands, such as Heineken, Krusovice and Amstel, to satisfy the demands of the growing market in Georgia.
GBG is owned by JSC Teliani Valley, one of the leading wine producers in the country that is listed on the Georgian Stock Exchange.
Teliani Valley currently imports Heineken and Krusovice beer to Georgia, but aims to start producing these brands – and also Amstel in coming years – for the first time. The company will also develop a new, local brand of beer.
Global Beer Georgia will also receive a grant to introduce energy efficient technologies from the EBRD’s FINTECC programme, co-funded by the Global Environmental Facility (GEF).
The grant of up to €73,000 will go towards the construction of a CO2 recovery plant which will capture the carbon dioxide released during the carbonated drinks production process.
Gilles Mettetal, EBRD Director for Agribusiness said: “Georgia is famous for its wines, but good quality beer is also very popular. By starting the production of well-known brands locally, Teliani Valley will not only bring new technologies and raise production standards, but also will create local jobs and create competition that will result in improved price and quality.”
Koba Chanturia, CEO of Global Beer Georgia, added: “We are delighted to cooperate with the EBRD. The Bank is not only supporting us financially but also with extensive technical advice. This will play an important role in making this project successful. The new company will have new state-of the-art equipment that will be more energy efficient and able produce high quality soft drinks and beer for competitive prices. “
This facility is in line with the EBRD’s strategy to finance the development of the agribusiness sector, promote the local private sector and the adoption of best European standards and environmental practices.
The EBRD has been active in Georgia since the country’s independence. To date, the Bank has invested in 197 projects with almost € 3 billion across various sectors of the Georgian economy.