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RG Brands Agribusiness Project
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.
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