The European Bank for Reconstruction and Development (EBRD) has completed the syndication of a EUR50m loan to retailer Konzum to finance its regional expansion plans.

The loan was subscribed by EBRD, alongside banks including Zagrebacka banka and Hypo Alpe-Adria-Bank.

The proceeds of the syndicated loan will enable Agrokor-owned Konzum to open stores in smaller towns of Bosnia and Herzegovina and to restructure its balance sheet, the company said yesterday (4 August).

This is the second syndication in the agribusiness sector recently completed between the EBRD and Agrokor, EBRD said.

In 2008, the bank syndicated a EUR70m loan for Idea, Agrokor's Serbian subsidiary, EUR35m of which was subscribed by Alpha Bank of Greece.

"These successful syndications demonstrate that even in the current challenging market circumstances there are commercial banks with liquidity and appetite to support their core clients in eastern Europe when the right structure and terms are proposed", said Gilles Mettetal, director of the agribusiness team at the EBRD.