EBRD, Bank CenterCredit back AB Restaurants expansion in Kazakhstan
Kazakhstan's food-service sector is drawing fresh financing as AB Restaurants prepares to expand and refurbish part of its network in the country's two largest cities. The funding combines EBRD risk-sharing support with a loan from Bank CenterCredit, aiming to strengthen ABR's balance sheet and raise competitive pressure in the market.
Highlights
- EBRD and Bank CenterCredit support AB Restaurants with a risk-sharing agreement on a KZT 3.7 billion loan to fund renovation and expansion.
- AB Restaurants plans to renovate five venues and open up to five new sites in Almaty and Astana, reinforcing its long-term growth strategy.
- EBRD's investment promotes innovation in Kazakhstan's food-service sector, contributing to its $13.8 billion total investment across 361 projects in the country.
Financing plan for restaurant growth
As reported by European Bank for Reconstruction and Development, the lender and Kazakhstan's Bank CenterCredit are supporting the operations of AB Restaurants through a risk-sharing agreement tied to a KZT 3.7 billion loan.Under the arrangement, the EBRD is sharing half of the risk on the financing provided by BCC. The funding is set to help ABR renovate and change the concept of five restaurants, while also opening as many as five new sites in Almaty and Astana.
The company is using the financing to reinforce its balance sheet in support of its long-term growth strategy. ABR is one of the largest restaurant chains in Kazakhstan and operates 48 restaurants that serve 7 million guests a year.
Implications for Kazakhstan's food-service market
The financing is intended to promote innovation and lift standards across Kazakhstan's domestic food-service sector, while also increasing competitive intensity in the market. The planned upgrades and new openings in Almaty and Astana are likely to broaden consumer choice in the country's biggest urban markets.The deal also extends the EBRD's long-running activity in Kazakhstan, its largest and longest-running investment destination in Central Asia. To date, the bank has invested nearly U.S. $13.8 billion, equivalent to 12.3 billion euros, across 361 projects in the country.
In our earlier article on Equites Property Fund’s UK exit and interim results, we explained how the group lifted its interim distribution after selling down UK assets and redirecting capital toward South Africa. We also noted that proceeds from the Aviva portfolio sale helped reduce leverage, strengthen liquidity, and support a renewed pipeline of domestic logistics investments.
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