JSC Baltika Brewery

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The project consists of a US$ 40 million (EUR 35.4 million) corporate loan to the leading Russian brewery, JSC Baltika Brewery, to support the financing of its development programme. Project objectives: The proceeds of the loan will complement the company’s internally generated cash flows and will enable Baltika to expand its production capacity at its two existing sites, to develop its distribution network across Russia and to strengthen its long-term working capital position. The project is expected to have a significant impact on the transition process and a high demonstration effect, given its support of a locally managed company with strong and well-respected corporate governance and an impressive track record. The transition impact should be viable and realisable even in Russia’s difficult economic environment, given Baltika’s position as one of Russia’s strongest national consumer products companies. As the leading brewery in the Bank’s countries of operations, the company is committed to the development of crucial linkages with upstream and downstream business sectors, which should result in a long-lasting transition impact. JSC Baltika is the leading Russian brewery and a major consumer products company in the Russian Federation. It is based in St Petersburg and majority owned by Baltic Beverages Holding AB (BBH), a 50:50 joint venture between the leading Scandinavian brewers, Pripps Ringnes and Hartwall. Baltika is generally regarded as one of the best managed and most highly respected industrial companies in Russia. US$ 40 million (EUR 35.4 million) medium-term loan, including a US$ 30 million to US$ 35 million (EUR 26.6 million to EUR 31.0 million) loan from the EBRD and a prospective US$ 5 million to US$ 10 million (EUR 4.4 million to EUR 8.8 million) loan from participating commercial banks. The project is expected to have a significant impact on the transition process and a high demonstration effect, given its support of a locally managed company with strong and well-respected corporate governance and an impressive track record. The transition impact should be viable and realisable even in Russia’s difficult economic environment, given Baltika’s position as one of Russia’s strongest national consumer products companies. As the leading brewery in the Bank’s countries of operations, the company is committed to the development of crucial linkages with upstream and downstream business sectors, which should result in a long-lasting transition impact. None