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SAS Group Operation

Armenia | Consumer Staples

Identification Code:: OP/07/0668
Total Operation Cost:: — USD
Maturity:: 84 months
Operation Status:: BSTDB Approved Amount – Approval Date

7.600.000 USD – 01 Dec 2007
: BSTDB Signed Amount – Signed Date

7.600.000 USD – 16 Jan 2008
: Status:
Completed
Description and Purpose of the Operation:: BSTDB provided a financing to "SAS Group LLC", (Armenia) one of the three major super market chains operating in Armenia. The loan will be used for financing costs related to the expansion of SAS supermarket chain, which involves opening of 3 new supermarkets in Yerevan, as well as refinancing of existing short-term loans of the Borrower.
Countries of Operation:: Armenia (100,00%)
Financial Product:: Loans
Sector:: Consumer Staples
Domain:: Private
Borrower/Client:: SAS-Group LLC is a limited liability company registered in Yerevan in 1998 and owned by the Sargsyan brothers.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The Operation will contribute to the development of food distribution infrastructure in Armenia, which is essential for expanding of operations of local food processing companies and farmers. Thus, the Operation will provide indirect support to the development of the Armenian agribusiness sector. Given the fact that a number of BSTDB’s countries of operation, i.e. Bulgaria, Georgia, Moldova, Romania, Russian and Ukraine are suppliers of food products to Armenia, the development of food distribution system in the country may be expected to contribute positively to economic cooperation and trade among several countries of the Black Sea Region. The Operation will contribute to strengthening competition in the retail trade sector in Yerevan. Thus, it will serve to improve living standards in Armenia. The Operation is expected to generate a significant positive effect in terms of creating new job opportunities.
Environmental Classification and Impact:: Screened as B0. Environmental Assessment concluded that the operation is associated with few limited EH&S impacts, which are industry specific and readily mitigated. The Borrower is required to remain compliant at all times with applicable Armenian EH&S rules and regulations; and report on annual basis on overall EH&S performance.
Operation Leader:: General Industries, Transport, Tourism 1
E-mail:: gitt1@bstdb.org