VTB Bank has opened a three-year RUB 1 billion revolving credit line to Obuv Rossii. The funds will be used to finance the footwear retailer’s investment in opening 120 additional stores in 2014.
In October 2013, VTB Bank and Obuv Rossii signed a loan agreement for RUB 500 million for 1.5 years. The new facility brings VTB’s total financing to Obuv Rossii to RUB 1.5 billion.
“Obuv Rossii is a fast growing business,” said Deputy President and Chairman of VTB Bank Management Board Mikhail Oseevskiy. “It has a stable financial position, and the expansion of its retail network will strengthen its foothold in Russia’s regions. The company has solid potential for further growth, which VTB will help it attain.”
Obuv Rossii Group of Companies is the federal footwear company, one of the top five footwear retailers in Russia and a leader of the footwear market’s mid-price segment. Established in 2003, the company is headquartered in Novosibirsk. Its key business areas include wholesale and retail trade in footwear and accessories, and footwear manufacturing. The group operates through two chains, Westfalika (monobrand stores working in the mid-price segment) and Peshekhod (multibrand shoe supermarkets), and the Emilia Estra fashion brand of moderately priced bags and accessories. The company runs more than 300 stores in over 90 cities of Russia. In 2013, Expert RA Rating Agency brought the credit rating of Obuv Rossii to A+ (a very high level of reliability) with a "stable" outlook. The company reported RUB 574 million in net profits under the International Financial Reporting Standards, on revenue of RUB 4.9 billion in 2013. Last September, the company consolidated its assets into a joint stock company with RUB 7 billion share capital. In March 2014, Obuv Rossii opened an online store, www.westfalika.ru. Its revenue grew 60% in the first quarter of 2014, and its 2014 target exceeds RUB 7 billion. The company plans to operate about 400 stores by the end of this year. For more information on the company, please visit www.obuvrus.ru.