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Georgia's wine industry receives EBRD financing
A US$ 5 million (EUR 4.8 million) medium-term loan from the European Bank for Reconstruction and Development (EBRD) will boost the Georgian wine industry, one of the country’s most promising export sectors. The loan to Georgian Wines and Spirits (GWS) will have a commercial guarantee from PR Europe S.A., its majority owner and a fully owned subsidiary of Pernod Ricard S.A., one of the world’s leading beverage companies.
"The loan to Georgian Wines and Spirits will support the company’s development in an increasingly difficult market. The financing shows how the EBRD can serve the needs of the Georgian agricultural sector while still adhering to sound banking principles," said Hans Christian Jacobsen, Director of the EBRD’s Agribusiness Team. "In helping this private sector enterprise, the Bank is supporting the expansion of a sector with a great tradition and strong export potential."
"The success of GWS is due to the energy and competence of its local management team and to Pernod Ricard’s strength in the sector, as well as its long-term commitment to Georgia and eastern Europe", said Pierre Pringuet, President of PR Europe.
The 6.5-year loan will help GWS to purchase winemaking equipment and will provide the company with a more balanced capital structure, preparing GWS for further growth. It will also enable GWS to substantially upgrade its wine production facilities and to improve the quality of its export-driven wine production.
Established in 1993, GWS is the leading producer of high-quality Georgian wine and the country’s leading wine exporter. Its products have sold extremely well in Russia, other countries of the Commonwealth of Independent States (CIS) and also in the United States. As a result of the continuous improvement in quality, GWS is on the verge of entering highly competitive Western markets, such as the United Kingdom.
Pernod Ricard S.A., the leading European alcoholic beverage producer and the fifth-largest world-wide, had a consolidated net income of EUR 202 million and net sales of EUR 3.1 billion in 1998. The Pernod Ricard Group has a strong track record in developing and implementing wine projects around the world.
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