Eurotorg signs syndicated loan facility with Russian banks

Eurotorg LLC (“Eurotorg” or the “Company”), the largest food retailer in Belarus, today announces the signing of a RUB 3.5 billion syndicated loan facility agreement (the “Transaction”). The syndicated loan consists of two tranches: a three-year RUB 0.5 billion and a five-year RUB 3 billion. The structure of the transaction makes it possible for additional lenders to join the facility.

Gazprombank and MKB Bank acted as the mandated lead arrangers and lenders. Gazprombank also acted as documentation agent.

Andrei Zubkou, CEO of Eurotorg, said: “We are pleased to announce that Eurotorg has closed its second successful Russian capital markets deal in 3Q 2019. This transaction marks an important step in diversification of our financing sources and optimising the Company's debt profile. The proceeds will be used for refinancing purposes and will extend Eurotorg’s debt maturity profile.”

Ivan Dun’, Vice President and Head of Syndicated and International Financing Department of Gazprombank, said: “This is the first syndicated loan for a private corporate borrower in Belarus, so signing the agreement is a landmark event both for the Company and for the Belarusian market as a whole. The Bank is already cooperating with Eurotorg and arranged the issue of the company's ruble bonds in July 2019. Attracting long-term unsecured financing underscores Eurotorg’s strong standing as a reputable, high-quality borrower with a robust strategy, efficient business model and significant potential for future growth.”

Alexander Kaznacheev, Deputy Chairman of the Management Board of MKB Bank, said: “MKB Bank is actively working with companies from countries belonging to the Eurasian Economic Union, and offers various forms of financing based on the current needs of each client. In this case, a deal involving MKB will help the Company to optimise its debt portfolio. The Bank has been working with Eurotorg for a long time. Previously we provided the company with working capital loan, and acted as an organiser of the Company’s bonds issue. Eurotorg is currently one of the best borrowers in Belarus and a leader in the food retail segment. We are highly interested in continuing our cooperation.”