Kopeika to transfer its core business to Sberbank

Kopeika is ready to give Sberbank a controlling stock of its operational company, Kopeika Moscow, and about 50,000 square metres of real estate in order to obtain RUB2 billion (USD64 million) credit from the bank. The funds would be used to refinance Kopeika’s bond of the third series of RUB4 million (USD128 million).

Kopeika’s Financial Director Alexander Tarasov said that the company’s strategy is to extend its credit portfolio. Once Kopeika has refinanced the third series bond, about 90% of its debt will become long-term. Currently, the retailer has RUB9.5 billion (USD305 million) total debt. Kopeika Moscow generates more than 90% of the retailer’s revenue.

www.planetretail.net