Russia: Efes to refinance loan on Krasny Vostok purchase

Efes Breweries International is acquiring a long-term syndicated loan for $500 million to refinance its purchase of Russia's Krasny Vostok Brewery and invest in the development of the brewery, the company said in a press release, Interfax released July 22.

Citigroup and HSBC received a mandate for the syndicated loan. When Efes paid for the brewery in February, these two banks issued the company a short-term bridge loan for $500 million.

Efes said earlier that it planned to refinance the bridge loan with Eurobonds, however it appears the company has decided against these plans based on the release.

Efes Breweries International N.V. and Anadolu Efes Biracilik ve Malt Sanayi A.S. acquired a 92.34% stake in Krasny Vostok from Airat and Ilshat Khairullin for $364 million.

26 July, 2006