OAO Detsky Mir to raise up to $50m from EBRD

The EBRD is considering providing a loan of up to USD 50 million to OAO Detsky Mir (“Detsky Mir” or the “Company”)to finance the further expansion of the retail network of Detsky Mir into Russia’s regions. Detsky Mir is the largest retailer of children’s goods in Russia and the CIS.

The company aims to open over 100 new stores in the regional cities of Russia by 2011.

The transition impact potential of the Project is derived primarily from supporting the development of the organised retail market for children’s goods in the regions of Russia and the development of logistics to support the planned vast regional retail network. The organised retail market is expected to increase the level of service, the efficiency standards and the quality and safety of the goods proposed in the regions.

The Project will also

(i) support the transfer of up-to-date skills, (including modern merchandising and extended customer services, into the remote Russian regions)

(ii) support the development of the Russian retail industry in line with the best international practices.

Detsky Mir is the largest retailer of children’s goods in Russia and the CIS. Detsky Mir is incorporated in Russia and is 100% owned by JSFC Sistema.

The EBRD will provide a loan of up to USD 50 million to Detsky Mir.

Total project will cost approximately USD 100 million.