STAR COMPANY RECEIVES CREDIT TO $3 MLN FROM HSBC BANK

ArmInfo
2009-03-16 09:57:00

ArmInfo. The biggest retail network of supermarkets, STAR, has
received a credit to $3 mln from HSBC Bank (London) with 5-year
repayment term. As Executive Director of STAR Vahan Kerobyan said,
the funds received by the Company at beneficial rates will be directed
to fulfill the liabilities to suppliers of the goods. According to
him, STAR schedules to start cooperating with suppliers on a line of
factoring. Moreover, this programme is already under development and
will be implemented jointly with the European Bank for Reconstruction
and Development (EBRD) and one of the local banks. "The factoring
has many advantages, and first of all, for our suppliers, that is
important for us", V. Kerobyan said. According to him, the programme
aims at timely crediting of suppliers at lower tariffs than those on
similar bank products. Moreover, STAR envisages to receive a credit
to $4.5 mln in 2009 from EBRD shareholder, in addition, part of these
funds will be directed to refinancing of the local banks’ short-term
credits, and the remaining part – to the capital investments for the
network development.

The management of STAR is currently negotiating with the International
Financial Corporation (IFC) for reception of long-term financing in
2009-2010 at the rate of about $8 mln.

To note, the authorized capital of STAR as of early February, 2009,
made up about $12.2 mln and the total capital – $20 mln. Today,
STAR network, which has been functioning since 1998, numbers 12
supermarkets (11- in Yerevan and 1 – in Hrazdan). STAR shareholders
are Henri Zakharyan (71,7%) and the European Bank for Reconstruction
and Development (28,3%).