Alfa-Bank to give $100m loan to private Belarusian company
Alfa Bank Group to give syndicated loan to Eurotorg — chain of Euroopt stores
The loan is mostly funded by Alfa-Bank JSC (Russia), with some contribution from Alfa-Bank CJSC (Belarus). Naturally, the attraction of such a large loan from abroad into the country’s private sector is an extraordinary event.
Boris Medovoy, the Managing Director of the Large Corporate Clients Department of Alfa-Bank (Russia), tells us that Eurotorg is a Belarusian leading retailer and was the first from Belarus to set up in Russia.
The five year syndicated loan from Alfa-Bank — worth $100m — is a landmark event, being the first given to a private company in Belarus. “The loan is evidence of trust in the Belarusian company as a responsible partner, while confirming the reliability of retail as an attractive branch for investment,” notes Mr. Medovoy.
Andrey Zubkov, Director General of Eurotorg Ltd., underlines that the agreement should be viewed as an investment. “The loan will be primarily used to develop the chain and give capital investment into building new outlets,” he explains. The Belarusian company is keen to enter external markets, primarily using Russian capital. “Russia understands the situation in Belarus and knows how little risk there is — unlike some in the West,” he asserts.
According to Mr. Zubkov, the loan is very attractive for Eurotorg, being long-term (five years) and offered on more affordable terms than are available on the Belarusian market. He stresses, “This is the first money we’ve managed to attract from abroad, allowing us to preserve our course of intensive development. Next year, we plan to expand our chain by a hundred trade outlets — made possible from the attraction of the loan.”
According to Mr. Medovoy, further collaboration with this Belarusian company may involve syndicated loans from Alpha-Bank, involving other non-resident banks, including those in Russia.