Moscow-based bank joins syndicated loan for Romanian Profi takeover

Moscow-based International Investment Bank (IIB) has decided to contribute with RON 75 million (EUR 16.5 million) to a syndicated loans worth over RON 1.3 billion (over EUR 300 million) that private equity firm Mid Europa Partners has taken to finance the takeover of the Profi supermarket chain in Romania.

The syndicate participants also included the Citibank’s London branch, Citibank Europe Dublin’s Romanian Branch, ING Bank’s London branch, Raiffeisen Bank International, and UniCredit. The financing deal was closed in the first quarter of 2017 for a period of 7 years.

Mid Europa Partners signed the acquisition of the Profi supermarket network from Polish private equity firm Enterprise Investors in November 2016. The EUR 533 million deal was finalized in the first quarter of this year. The syndicated loan was used to finance part of the acquisition and provide funds for Profi’s expansion.

Profi has reached 540 stores in 285 towns and villages in Romania and over 12,000 employees. The company has the widest geographical presence of all local retailers.

“In 2016, we made a successful placement of bond securities on the Bucharest Stock Exchange, so the IIB’s participation in the syndicate is a targeted reinvestment of these funds raised into the economy of our shareholder, Romania. It is the first time that the Bank has financed such a deal in a local national currency. We plan to continue such a practice in the future,” said Denis Ivanov, IIB’s Deputy Chairman of the Board.

The IIB has been increasing its investments into the Romanian economy while raising funds on the local market. The volume of signed agreements for investments into Romanian entities has exceeded EUR 60 million in the last few years. The total funding the bank has raised on the Bucharest Stock Exchange reached RON 411 million (around EUR 90 million).

IIB will hold its 107th Council Meeting in Bucharest in June. The International Investment Bank (IIB) was founded in 1970. Current shareholders of the bank include: Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia, and Vietnam.

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