EBRD Financing (€307 Million) Supports Atlantic Group in Southeast Europe
Atlantic Group, one of the largest regional food producers in Southeast Europe, has arranged a €307 million financing package with European Bank for Reconstruction and Development (EBRD). The package – the biggest syndicated deal in the region in the corporate sector in 2012 – will support a strong regional corporation at times when the region is still recovering from an economic recession. The package has a complex structure. In the A/B portion of the financing, up to €60 million will be for EBRD’s own account (A-loan) and up to €172 million will be syndicated to other participating lenders. The EBRD-arranged the term loans with the partner banks (Raiffeisen Bank International, Unicredit Bank, Sberbank/Volksbank International and Erste Bank), which will be made to three of Atlantic Group’s subsidiaries in Serbia, Croatia and Slovenia, Grand Prom, Atlantic Trade and Droga Kolinska, respectively. The funds will be used for refinancing of existing debt and energy efficiency projects.
Atlantic Group leads the way in energy management, corporate responsibility and governance. Atlantic Group is an existing client of the EBRD. The cooperation started in 2010 with the landmark acquisition of the Slovenian Droga Kolinska, one of the leading regional food and beverage producers in ex-Yugoslavia. The Bank supported the acquisition with equity and mezzanine financing.
Emil Tedeschi, Atlantic owner and CEO, stated that the EBRD will continue to support the group’s expansion strategies towards the Russian, Eastern European, North African and Turkish markets. Atlantic Group’s business efforts in Russia have reached €30 million in 2012, with plans to expand to revenue figures of €100 million. Suma Chakrabarti, EBRD President, stated that this agreement was an excellent example of regional integration, which represents a positive signal towards the region, regardless of the present political tensions.