EBRD grants EUR 80 million loan to MK Group to expand production and improve environmental standards

(Miodrag Kostic, owner of MK Group)

The European Bank for Reconstruction and Development (EBRD) announced Friday (August 5, 2011) that it was boosting support to the Serbian agricultural sector with new financing for the country’s leading agribusiness operator to expand its production and increase energy savings.

A €80 million loan will provide MK Group and its subsidiaries with long-term financing for its agricultural activities and improvements in environmental standards, it was announced on the EBRD`s website.

The EBRD will provide up to €40 million of the total financing, while the remaining amount will be syndicated with international commercial banks. In particular, the funds will be used to help MK Group and its trading arm MK Commerce to build up their farming operations, reads the statement issued by the EBRD.

The Bank`s release also reads that ten million euros of the funds will be invested in an equipment upgrade at Sunoko, a local sugar producer, and this is expected to result in reduction of CO2 emissions and thermal consumption.

“Built on our continuous cooperation with the EBRD, the new loan will help MK Group to meet its working capital needs. Importantly, it will enable our company to extend our farming operations and support to local primary producers, also contributing to ‘greener’ performance across the sector. The EBRD`s involvement will also reinforce our efforts in raising capital on international markets,” said Miodrag Kostic, President of MK Group.

"The investment will provide MK Group with a stable financing platform and funds for energy efficiency measures. The project will also contribute to greater productivity in the Serbian farming sector, enhancing competition and setting higher environmental standards,” said Gilles Mettetal, the EBRD’s Director for Agribusiness.

MK Group d.o.o. Beograd

EBRD Evropska banka za obnovu i razvoj Beograd

MK Commerce d.o.o. Novi Sad

Sunoko d.o.o. Novi Sad

Agroinvest - Salaš 84 Novi Sad

MK Group

EBRD

ecology

environmental standards

MK Commerce

Miodrag Kostic

Gilles Mettetal