Project description
and objectives:
|
Proposed financing to Anadolu Efes and its subsidiaries for the expansion of its operations throughout the EBRD's countries of operations. Anadolu Efes intends to expand in countries where it is already present or to enter new markets via acquisitions of existing breweries.
The project aims to allow Efes’ operating subsidiaries to respond to an upsurge in market demand by increasing capacity at a low investment cost. This would be achieved by:
- adding new capacity in various markets;
- exploiting the value of various brands which Efes has created over the years
- eliminating bottlenecks in production at existing breweries by continuing to improve technological processes; and
- investing in working capital until full production under new capacity is achieved.
|
Sub-projects:
|
- EFES - Kazakhstan
- EFES - EBI
- Moscow Efes Regional Acquisition
|
Transition impact:
|
The project would have a positive impact on the transition process in a number of ways.
- Demonstration of the EBRD's willingness to support its successful clients in their expansion underlines the Bank’s commitment to clients.
- The growth of the brewing sector in 2000, in various countries of operations, has attracted significant attention from local, as well as international brewers. Efes has contributed to this growth by making available a quality product in the markets where it operates, primarily by upgrading technology and investing continuously in distribution and marketing. The expected growth in the consumption of quality products will, in turn, translate into larger demand for good quality local bottles and malting barley, in addition to distribution expertise.
- The sponsor has to date achieved a smooth transfer of technology, marketing, distribution, production and general management skills from other sponsor companies and is on the forefront of efforts to attain industry best practice. The key area for the sponsor at present is national coverage of most markets by expanding capacity and strengthening of its distribution network.
- The profits generated from the successful initial investment are starting to benefit related small and medium-sized enterprises (SMEs).
|
The client:
|
Anadolu Efes is the beverage division of one of the largest Turkish conglomerates Anadolu End?stri Holdings A.S. The client is one of the leading beverage groups in the region, with an annual brewing capacity of 1,400 million litres, a malting capacity of 150,000 tonnes and a Coca-Cola bottling capacity of over 60 million unit cases. Anadolu Efes is listed on the Istanbul Stock Exchange and holds a 4.4 per cent weighting in the MSCI Turkey index. As of 2000, Anadolu Efes sales volumes reached 753 million litres, a 22 per cent increase compared to 1999. Under International Accounting Standards (IAS) 2000 consolidated revenues were US$ 457 million and net profit totalled US$ 79 million. Besides Turkey, Anadolu Efes’ operations cover Russia, Ukraine, Romania, Kazakhstan, Kyrgyzstan, Azerbaijan, Turkmenistan and Tajikistan, either in beer production and malting operations or Coca-Cola bottling operations via franchising.
|
EBRD finance:
|
Up to $30 million debt or equity with the following projects:
- Signed: A loan of up to US$ 9.5 million (€8.2 million) to Efes Karaganda Brewery CJSC (Kazakhstan).
- Signed: Equity investment of US$ 5.9 million (€5.1 million) in Efes Breweries International B.V. (Regional).
- Board Approved but not signed: Loan of up to US$ 14.6 million (€12.6 million) to Moscow Efes Brewery for acquisition of a second brewery (Russia).
|
Total project cost:
|
Project cost would be determined on an individual project basis.
|
Environmental impact:
|
Projects financed under this facility are reviewed on an individual basis. Due diligence is likely to include environmental audits of existing facilities and/or environmental assessments of impacts associated with green-field projects. Compliance with relevant national and European Union health, safety and environment standards will be sought in each case, and an environmental action plan will be drawn up with the company to implement various environment, health and safety management systems.
|
Technical
cooperation:
|
None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
|
Company contact:
|
|
EBRD contact:
|
Marc Van Strydonck, Operation Leader: strydonm@ebrd.com
|
Business opportunities:
|
For business opportunities or procurement, contact the client company.
|
General enquiries:
|
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
|
