E-Malt.com News article: Georgia: EBRD agrees to provide EUR18.5 mln of loan for construction of greenfield brewery in Georgia
The European Bank for Reconstruction and Development (EBRD) has agreed to provide €18.5 mln of loan to Global Beer Georgia (GBG) to construct and operate a greenfield brewery in Georgia, Drinks Business Review reported on December 29.
It will be a syndicated loan package which will include an A loan of €6.2 mln from EBRD’s own account, a B loan of €6.2 mln from Dutch development bank FMO and German development bank DEG will act as a parallel lender offering another €6.2 mln.
GBG is owned by JSC Teliani Valley, a major wine producer in Georgia. The company is also listed on the Georgian Stock Exchange.
The company's new brewery produce both locally developed and international beer brands such as Heineken, Krusovice and Amstel to meet the growing demand for beer in Georgia.
Teliani Valley, which currently imports Heineken and Krusovice to Georgia, plans to produce these brands in the coming years.
It also plans to develop a new, local brand of beer and produce Amstel in coming years.
Apart from the loan, EBRD will also provide grants to GBG to implement energy efficient technologies through its FINTECC program, co-funded by the Global Environment Facility (GEF).
The grant will be invested in the construction of a CO2 recovery plant which will capture carbon dioxide released during the production process.
EBRD Director for Agribusiness Gilles Mettetal said: “Georgia is famous for its wines, but good quality beer is also very popular. By starting the production of well-known brands locally, Teliani Valley will not only bring new technologies and raise production standards, but also will create local jobs and create competition that will result in improved price and quality.”
Global Beer Georgia CEO Koba Chanturia said: “We are delighted to cooperate with the EBRD. The Bank is not only supporting us financially but also with extensive technical advice. This will play an important role in making this project successful.
“The new company will have new state-of the-art equipment that will be more energy efficient and able produce high quality soft drinks and beer for competitive prices. “
30 December, 2016