EBRD to invest in TAKF Tambov - European Bank for Reconstruction and Development - Brief Article

Eurofood, July 19, 2001

The European Bank for Reconstruction and Development (EBRD) is planning to invest US$1.5m in the development of the confection-maker TAKF (Tambov), a subsidiary company of Moscow-based group of confectioners Krasny Oktyabr.

The corresponding memorandum has been signed by the Netherlands' Rabo Black Earth, which manages the EBRD's venture fund, Krasny Oktyabr and the Tambov plant, Krasny Oktyabr attorney Konstantin Fedenyuk has told Interfax. This document envisions that part of the funds will be put into the purchase of an additional TAKF stock issue, one supposed to be of 1.5 million shares with par value of one rouble.

The remaining funds will come as a long-term loan, Fedenyuk said. He declined to give further details of the memorandum, citing the parties' non-disclosure agreement. The investment will be put into expanding the waffle production from 1 500 to 3 500 tonnes a year.