KUKE insures the investment of the Polish clothing brand in Belarus
The Polish clothing brand, CDRL S.A. (Coccodrillo), signed a PLN 10m loan agreement with Bank Gospodarstwa Krajowego (BGK). The funds so obtained will be used for partial refinancing of the purchase of shares in the Belarusian group which manages supermarkets selling articles for children. This is the first use of a BGK loan for acquisitions outside the EU. The financing is combined with a KUKE’s insurance which covers the investment against political risk. This type of package is a completely new solution on the Polish market.
BGK granted a long-term loan to CDRL S.A., a Polish company which is a distributor of children’s clothing sold under the Coccodrillo brand. The loan amount is PLN 10m. The purpose of the loan is to refinance the purchase of shares in the Belarusian LLC DPM, a company which manages supermarkets selling articles for children, trading as Buslik, which was acquired by CDRL S.A. at the beginning of 2019. This is the first acquisition supported by BGK on the market outside the European Union.
CDRL S.A. is active on 4 continents, including in countries such as the Czech Republic, Romania, Bulgaria or the Baltic states, and outside the European Union - in Belarus, Russia, Kazakhstan, Sri Lanka and Saudi Arabia. The funds raised by the company will allow it to develop its operations on the Belarusian market. The acquisition involves the purchase of shares of the Buslik supermarket chain, which comprises 46 retail outlets, including 17 in Minsk. The Belarusian chain offers products for children under 12, including children’s clothing, footwear, food, accessories for infants, cosmetics, toys and furniture.
The funds raised through the acquisition loan will support an even more effective development of the Polish company. The support provided by BGK and KUKE additionally protects the investment against political risk.
The combination of a loan for foreign acquisition with investment insurance in KUKE may also work for financing of projects of Polish enterprises on other foreign markets.