Financing2 for a major project of Cherkizovo Group, one of Russia’s leading food manufacturers, has been approved with assistance from Sberbank CIB. The funds will be used to finance the company’s joint project with Spanish company Grupo Fuertes to construct a turkey meat processing and production plant in the Tambov Region. The total amount of investment in the Tambov Turkey project is RUB 7.5 bln, with over RUB 3 bln jointly provided by Grupo Fuertes and Cherkizovo Group. The output of the project is estimated at 40,000 tonnes of turkey meat per year. The launch date of the plant is 2015.
Sergei Mikhailov, Chief Executive Officer of Cherkizovo Group, commented: “This is Cherkizovo Group’s first international project which is being implemented in partnership with one of the leaders of the European poultry market. We are certain that the unique combination of European turkey farming experience and our Russian market experience — Cherkizovo Group owns the country’s largest and most successful frozen poultry brands such as Petelinka, Kurinoe Tsarstvo and Mosselprom — will enable us to execute our Tambov Region project on time and go on to occupy a leading position on the dynamically growing Russian turkey meat market. Cooperation with a reliable financial partner is essential if we want accomplish these goals. We are glad that Sberbank, with whom we have already carried out several successful projects, is that partner.”
Kirill Polishkin, Acting Head of the Client Management Department at Sberbank CIB, Managing Director, said the following about the deal: “We highly value our long and productive partnership with Cherkizovo Group. This project is being implemented according to the principles of project financing. It combines the in-depth expertise possessed by international producer Grupo Fuertes, Cherkizovo Group’s strong position on the Russian meat market and Sberbank of Russia’s experience in financing long-term agriculture industry projects. We are certain of the success of Tambov Turkey and intend to continue working on large, ambitious projects with our partners.”
Tambov Turkey is a landmark project because it involves Spanish company Grupo Fuertes, a leading European producer of turkey meat that possesses many years of experience in creating similar high-tech production facilities. The significant investment in this project is a testament to the development prospects of the Russian turkey meat market on the whole and foreign investors’ interest in high-tech Russian agriculture industry projects. This project to construct facilities for processing and producing turkey meat in the Tambov Region will help to considerably increase the volume of production of high-quality, nutritious poultry and make it more accessible to the Russian population.
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The Corporate & Investment Banking Business (Sberbank CIB) was created as part of the integration of Sberbank of Russia and Troika Dialog. Sberbank CIB’s key areas of activity are corporate finance (including trade finance), the documentary business3, investment banking services, trade operations with securities, and private equity. Sberbank of Russia’s Corporate & Investment Banking Business provides integrated financial solutions and investment advisory services to its clients, which include major corporations, financial institutions, sovereign states and federal and sub-federal government bodies and organisations.
Sberbank CIB Press Service
Cherkizovo Group is the largest meat manufacturer in Russia and one of the top three companies serving Russia’s poultry, pork and meat processing markets. The company is also Russia’s largest producer of fodder. Cherkizovo shares are quoted on the LSE and the Moscow Exchange.
The Group includes seven full cycle poultry production facilities, with a total capacity of 400,000 tonnes live weight p.a.; 14 modern pork production facilities with a total capacity of 180,000 tonnes live weight p.a.; six meat processing plants with a total capacity of 190,000 tons p.a.; six fodder plants with a total capacity of 1.4 million tonnes p.a.; grain storage facilities with a total storage capacity exceeding 500,000 tonnes; and a land bank exceeding 100,000 hectares. In 2013, Cherkizovo produced more than half a million tons of meat and processed meat products. In addition to existing production facilities, the Group is also investing in a 20 billion rouble hi-technology agro-industrial production complex in Elets, Lipetsk Region.
Head of Communications Cherkizovo Group
Tel: +7 495 788 3232 ext. 15019
1 On the basis of CJSC “Sberbank CIB”
2 Financing provided by Sberbank of Russia
3 Banking products and services provided by Sberbank of Russia