Posted: 6 months ago

Capital Locus Secured GEL 10 million for Biu-Biu

Capital Locus secured senior debt financing in the amount of 10 million GEL for Chirina LLC  – producer of Biu-Biu meat products in Georgia. Funding is provided by EBRD and its partner commercial bank within the risk sharing framework.

Owner and director of Chirina LLC Mr. Revaz Vashakidze: “Despite all challenges in 2020 we successfully completed our investment project of increasing Chirina’s broiler production capacity from current 1,200 tons to 2,000 tons per month. Fourteen new broiler farms became operational in March in Sartichala. The total project cost was 12 million EUR. Alongside with equity financing, the project was co-financed by a loan from EBRD. In the second half of 2020 Chirina initiated a new investment project.  We are investing 20 million GEL in building new freezer stores and sausage production factories which will be launched in the second half of 2021. This project is co-financed by a loan from EBRD and its partner commercial bank. Capital Locus has been Chirina’s partner in providing investment banking services since 2018. Being highly professional and by delivering excellent service quality Capital Locus has successfully structured and secured debt financing for our major investment projects.”

Avtandil Gogoli – Owner and Manager of Capital Locus: “We are delighted to have successfully completed a second corporate fundraising mandate from Mr. Revaz Vashakidze and his management team. Chirina is the largest poultry producer in the Caucasus. Vertically integrated supply, production, and distribution chain of the Company is built and equipped with cutting edge technology provided by global leaders of the industry. Company has quite a complex business model incorporating various business lines in its structure.

Working on commercial viability of Chirina’s investment projects and securing financing for them, besides responsibility, is very much rewarding for us professionally. This transaction, alongside Chirina and EBRD,  involved a number of other stakeholders such as commercial bank for a bridge loan and providers of technology and energy efficiency related financial benefits. The debt financing is in local currency. By incorporating various financial components we structured the transaction in an efficient manner for Chirina. At the same time, I believe we served our purpose of creating a value by ensuring an alignment of the long-term interests of all stakeholders involved in the transaction.“