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EBRD lends $8.3 mln to Turkey's largest food retailer
Loan helps Migros Turk expand into FYR Macedonia
Migros Turk AS, the largest food retailer in Turkey, is to expand its business
into FYR Macedonia with the help of an $8.3 million loan from the EBRD.
The eight-year loan is being used to finance the construction of a retail
complex by Ramstore Macedonia, a local company majority-owned by a Bulgarian
subsidiary of Migros Turk. The retail complex, to be constructed in Skopje,
the country’s capital city, will include a shopping mall and a hypermarket.
Hans Christian Jacobsen, Director of the Agribusiness Team at the EBRD, said
the Bank is very pleased to be supporting Migros Turk, one of the most active
and successful retailers in the former Soviet Union. Migros is introducing
modern food retail formats to the former communist countries which are
increasing competition and efficiency of these countries’ food distribution,
Mr Jacobsen said. The Bank’s investment will ultimately favour consumers
through higher quality goods and increased range of products sold at
competitive prices. It will also benefit local suppliers who can gain
improved access to consumers through the Ramstore hypermarket network.
Established in 1954, Migros is the leading food retailer in Turkey, with
annual consolidated sales topping $1.3 billion in 2003. In addition to its
Turkish operations, Migros has expanded rapidly through eastern Europe and the
Commonwealth of Independent States, with operations in Russia, Kazakhstan,
Azerbaijan, Bulgaria and now also in FYR Macedonia. This project builds on
previous cooperation between the EBRD and Migros Turk. In 2000, the Bank
approved $12.6 million to help the Turkish company expand into Bulgaria.
Omer Bozer, General Manager at Migros Turk, said the company's strategy is to
be an early mover in the emerging markets and to introduce the modern Ramstore
retailing concept to the people of these markets. He added that Migros Turk
welcomes the EBRD’s support to help the company enter the FYR Macedonia market
and to take full advantage of further growth opportunities in the country. The
construction of the shopping mall will start in May and is expected to open in
early 2005.
The EBRD is the largest investor in FYR Macedonia, with €322 million in 22
projects. Across its 27 countries of operations, the Bank has invested €3.25
billion in 204 agribusiness projects.
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