The European Bank for Reconstruction and Development (EBRD) announced it has made its second investment in Montenegro and has taken its first equity stake in Montenegro’s agribusiness sector.

 

The bank is investing €10 million in exchange for a convertible redeemable preferred equity stake in Voli d.o.o. Founded in 1995, Voli is Montenegro’s leading retailer with 57 food retail sites throughout the country.

 

The funds gained through the investment will be used by Voli to fund the construction of a new distribution center to be located in Podgorica, and to strengthen its retail network with the addition of two new stores.

 

“We are delighted to strengthen our relationship with Voli which started in 2009,” said Miljan Zdrale, EBRD Regional Head of Agribusiness for south-eastern Europe in a release announcing the investment on the EBRD’s website. “Since then we have seen Voli grow and mature and we welcome Voli’s plans for the expansion of its supply chain and retail network which will also have an impact on the local and regional supply chain. We look forward to participating in the company’s corporate governance and future development as a stakeholder alongside Mr Bokan.

 

The bank’s investment is expected to enable Voli to gain financial, operational, and resource efficiencies, while reinforcing its links with both suppliers and customers and lifting corporate governance standards.

 

“We are pleased to mark the 20th anniversary of Voli by deepening our partnership with the EBRD, which is the first of its kind in Montenegro,” said Voli founder and chief executive, Dragan Bokan in an EBRD release. “Together we will be working on delivering our goals. Our success will also be the success of Montenegro’s agribusiness sector as we will provide the platform for high-quality local produce. The partnership with the EBRD is an invaluable element in our Voli’s further growth and development.”