ASTANA (TCA) — Customers in Kazakhstan and neighbouring countries will benefit from a wider range of high-quality products manufactured and distributed by RG Brands, whose operations are supported by the European Bank for Reconstruction and Development (EBRD), the Bank said.
The EBRD is releasing funds worth KZT 2.5 billion (equivalent to US$ 7 million) to RG Brands, a Kazakhstan-based manufacturer of food and beverages. Under the agreement reached in 2015, the company will now receive additional funds to support its priority investments in sales and distribution equipment as well as other capital expenditure.
The funds will be used to purchase over 8,000 refrigerators and cooling display units, which will reduce electricity consumption and use an environmentally friendly refrigerant. The project is expected to reduce CO2 emissions.
Part of the project-related due diligence costs will be covered by a Green Economy Transition technical cooperation programme funded by the Bank’s shareholders.
The transaction marks a decade of successful cooperation between the EBRD and RG Brands. The company produces a diversified range of non-alcoholic beverages, including juices, soft drinks, UHT milk, tea, water and franchised brands. Total EBRD exposure to the company has now reached almost US$ 100 million, making it one of the Bank’s largest private sector borrowers in Kazakhstan.
To date, the EBRD has invested over €7.5 billion through 246 projects in the economy of Kazakhstan. Private sector support and diversification are among the Bank’s priorities in the country.