-: RG Brands Agribusiness Project

Project Data Sheet (PDS): Overview


Description

ADB will provide a 7 year corporate loan of up to $40.2 million to RG Brands, a leading food and beverage company in Kazakhstan. The company holds leading market shares in all its key products, particularly ultra-high temperature (UHT) milk, fruit juice, and tea. It plans to increase its revenues from $245 million in 2012 to $600 million in 2017. ADB will support this growth by providing long-tenor financing, which is not readily available for private sector companies in Kazakhstan since the 2008 2009 financial crisis. The project consists of (i) the expansion of RG Brands UHT milk and fruit juice production facilities ($14.9 million), (ii) investments to boost efficiency in production and distribution ($15.3 million), and (iii) the refinancing of debt maturing in the short term ($10.0 million). To better meet the needs of the company, ADB will provide $28.9 million in Kazakhstani tenge (through cross currency swaps) and $11.3 million in US dollar. Read More

Country Kazakhstan
Borrower/Equity Investment Name RG BRANDS KAZAKHSTAN LLP
Project Number 46944-014
Project Type or Modality of Assistance PS
Financing Private sector (Nonsovereign)
Status Approved
Approval Number 7387
Approval Date 19 Apr 2013
Geographical Location Kostanay (North of Kazakhstan) and Aksengir in Almaty Region (South of Kazakhstan)
Thematic Classification Economic growth
Private sector development
Safeguard Categories Environment: B
Resettlement: C
Indigenous People: C

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Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Responsible ADB Officer
Martin Lemoine
Request for information

Responsible ADB Department
Private Sector Operations Department

Responsible ADB Divisions
Infrastructure Finance Division 1

PDS Creation Date
25 Mar 2013

Last PDS Update
08 May 2014

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