Alfa-Bank has issued the first tranche of financing as part of a credit line with a limit of RUR 15.4 bln ($232.5 mio) to Cherkizovo Group, one of the leading manufacturers of meat products in the Russian Federation.
The credit line is opened for eight years and will be used for the construction of pig breeding farms in the Lipetsk and Penza Regions and the purchase of equipment for them. The funding will also be used for the purchase of breeding products, hybrid pedigree stock, equipment and specialized vehicles.
Alfa-Bank has been cooperating with Cherkizovo Group for the past five years. Due to the financing extended, the meat producer will achieve higher productivity by building new facilities and implementing one of the best feeding programs in the world. The company aims to make the production of pork products as cost-effective as possible – cutting costs, increasing production and profitability.
Cherkizovo Group is the largest meat producer in Russia, ranking first in cumulative poultry production and second in pork production. The structure of the group includes nine poultry farms, 16 modern pig farms, eight meat processing plants, nine feed mills, elevators and more than 287,000 hectares of agricultural land. In 2018, Cherkizovo Group produced about 1 mio tons of meat products. Its consolidated in 2017 reached RUR 90.5 bln ($1.4 bln).