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EBRD backs Russian retailer Lenta
$30 million loan to help St Petersburg chain continue its expansion
Lenta Group is to continue its rollout of warehouse club-style stores across
St Petersburg with the help of a $30 million loan from the EBRD.
The seven-year loan will help finance construction of three stores over the
next 12-18 months, increasing by 50 percent the number of Lenta outlets in St
Petersburg.
Lenta is at the vanguard of an emerging trend in Russian food retailing: large
cash-and-carry warehouses, open 24 hours a day, carrying a wide range of
merchandise at competitive prices.
Hans Christian Jacobsen, Director of the Agribusiness Team at the EBRD, said
the Bank is pleased to support one of the most successful retailers in Russia,
where there is a still a significant shortage of modern efficient retail and
therefore a good opportunity for new investments.
The Bank’s investment should ultimately benefit Russian consumers through
higher quality goods and increased range of products sold at lower prices, Mr
Jacobsen added. At the same time, Lenta’s financial transparency and
best-practice corporate governance may serve as a model for other Russian
retailers.
Oleg Zherebtsov, CEO of Lenta Group, said the company's strategy is to be an
early mover in the emerging warehouse-club market, and that Lenta welcomes the
EBRD’s support.
Established in 1993, Lenta Group is a leading food retailer in St. Petersburg,
with six cash-and-carry stores and expected annual sales of $430 million in
2004.
The EBRD is the single largest financial investor in Russia, with commitments
totalling €5.5 billion as of June 30, 2004. Across its 27 countries of
operations, the Bank has invested €3.5 billion in 213 agribusiness projects.
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