The European Bank for Reconstruction and Development (EBRD) has raised RUB3.5bn (US$150m) to finance the expansion of Fazer Group’s bakery business in Russia.
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Fazer Russia operates under the brand Hlebny Dom and is the largest bread and bakery operator in this highly fragmented market.
The EBRD loan will be used to fund capital expenditures of Fazer’s Group companies in Russia. Part of the loan will finance the construction of a new bakery in Leningrad Oblast, which will produce fresh and frozen bread. The total investment in the new bakery is estimated to exceed EUR100m.
Most of Fazer’s ingredients are purchased locally and by supporting this group the EBRD is encouraging the group’s local suppliers to make the investments needed to meet increasingly high standards of quality, hygiene and organisation which will ultimately benefit the whole industry in Russia, said Alain Pilloux, EBRD business group director for Russia.
Hlebny Dom is one of the leading players in the market in St Petersburg with an annual output of 130,000 tonnes of bread and other bakery products.
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By GlobalDataFazer’s Moscow-based Zvezdny bakery is one of the country’s largest manufacturers of pre-baked pizzas and frozen dough.
