The European Bank for Reconstruction and Development (EBRD) is providing a EUR 4 Million loan to Georgia’s vertically integrated, modern poultry farm Chirina LLC, which sells its poultry products under “Biu-Biu” brand. Alongside of EUR 8 Mill equity injection by shareholder of Chirina LLC the loan proceeds from EBRD will be utilized to finance construction of 14 new turn-key broiler farmhouses. Investment project will increase Chirina’s production capacity by 50% to 21,000 tons per year. Loan agreement was signed on June 21st, 2019.
Launched in 2013 as a greenfield project by the Georgian investor Mr. Revaz Vashakidze, Chirina LLC has grown to become the largest vertically integrated poultry farm in Georgia. During the last few years it has doubled domestic poultry production, substituting low quality imports of frozen chicken with the high quality locally produced meat. Operating according to the best food safety management principles Chirina LLC ensures product safety throughout the entire production cycle. Located in east Georgia, the poultry complex includes lands for cultivation of corn and wheat, grain drying and storage facilities, combicorn plant, hatchery, breeding farms, meat processing plant, rendering and water treatment facilities and well organized distribution fleet and retail shops.
“The EBRD is pleased to support Chirina’s expansion. This project will have a strong demonstration effect in terms of the development of the value-chain in agribusiness sector in Georgia, at the same time enhancement of import substitution, increase of food safety standards as well as cross-border trading. This is exactly a type of project in the private sector that EBRD is proud to support and would like work with many more local manufacturers and producers, through variety of financing tools.” said Catarina Bjorlin Hansen, EBRD Regional Director for Caucasus.
Mr. Revaz Vashakidze: “We are delighted that our cooperation with EBRD is broadening. Last year Chirina became first Georgian company being selected and becoming member of EBRD’s Blue Ribbon Programme. Today we signed loan and grant financing agreements with EBRD. In order to meet growing local and export demand on our “Biu-Biu” chicken meat products, we launched investment project for increasing production capacity of Chirina’s broiler farms by 50% from current 1200 tons to 1800 tons per month. Loan proceeds from EBRD will help us to successfully implement this project. We actively cooperate with corporate fundraising company Capital Locus. Our goal for cooperation with Capital Locus was to attract tailored financing solution for Chirina’s investment project. Capital Locus secured debt financing proposals from four different international institutions for us. We analyzed offered terms of financing, attitude and efficiency of each institution and decided to cooperate with EBRD. Today we signed the contracts.”
Avtandil Gogoli, founder of Capital Locus: “It is indeed a privilege and great deal of responsibility to have fundraising mandate from Chirina – regional leader of poultry industry in Caucasus. And we are happy that today deal was sealed. I would like to express gratitude to Mr. Revaz Vashakidze, to his Deputy Keti Vashakidze and to entire management team of Chirina for their invaluable support in this process. Enthusiasm and diligent work of EBRD’s team led by George Akhalkatsi can’t be overestimated. I am confident that signing the first loan agreement marks the beginning of long term and mutually beneficial cooperation between Chirina and EBRD”.
