News
Absolut Bank Opens RUB 1 Bln Credit Line to Obuv Rossii
Absolut Bank and Obuv Rossii Group have signed a credit agreement under which the Bank has opened a credit line of RUB 1 billion for the Group with maturity in October 2022. The money is raised for financing working capital and Company’s current operations.
“We have been already cooperating with Absolut Bank for five years, and we value the partnership relations we have developed over this period,” says CEO of Obuv Rossii Group, Anton Titov. “It is partly due to the bank’s supports that we have achieved significant results in the business development: we have considerably grown our retail chain that currently comprises over 860 stores in more than 330 cities and towns; we have modernized the factory, introduced state-of-the-art technologies and launched the production of new types of high-tech products.”
“The principle of Absolut Bank operation in corporate business is the development and strengthening of efficient cooperation with leading enterprises in their areas,” comments Evgeny Shein, head of Absolut Bank in Novosibirsk. “We see how Obuv Rossii Group is aggressively increasing its retail network year on year investing in IT solutions, creating new jobs and participating in improving the economic climate in the regions of presence. Being a partner bank, we are ready to provide such clients as Obuv Rossii Group the existing financial instruments on favourable terms to efficiently solve current and prospective strategic tasks.”
Obuv Rossii has been dynamically developing within the previously announced investment program: during the first six months of 2019, the Group opened 110 stores and entered 92 new towns. The Company’s revenue increased by 19.3% up to RUB 5.36 bln. The Group shows growth in other business lines too: online sales of Obuv Rossii for the first six months rose by 23%; the like-for-like proceeds from cash loans business – by 27%. The plans for this year include further development of the retail chain, IT infrastructure, services for customers and introduction of new technologies in production. The total number of new sales outlets the Company is planning to launch this year is 150.
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