FOREIGN COMPANIES INVEST IN CONSTRUCTION BUILDING MATERIALS SHOPS
The International Financial Corporation (IFC), part of the WB and NBG Balkan Fund, the venture capital fund of the National Bank of Greece will jointly invest BGL14.5MN in the Doverie United Holding's project for opening of Mr.Bricolage chain of stores for construction building materials. On November 30 the former privatization fund opened the first store in Sofia. New Varna-based and Plovdid-based shops are planned to open next year. The Doverie Brico management plans to establish trade centers in Bourgas and Skopje. The Mr. Bricolage trade mark has been obtained through a franchising contract. Doverie Brico can use the name of the French company in Bulgaria, Macedonia and Yugoslavia.
This is the first investment of the NBG Balkan Fund in Bulgaria. Actually it has paid BGL5MN for 24% of the Doverie Brico's capital. Owner of the remaining shares is Doverie United Holding. The stake owned by the Greek fund may increase if additional funding is needed, but it should not exceed 30%. NBG Balkan Fund will invest in another Bulgarian company soon. George Grigoropoulos, the Fund Manager however did not disclose its name.
The IFC investment of BGL9.5MN is in form of two loans. Repayment of that amounting to BGL3.5MN is related to the company earnings. IFC has invested totally USD131.7MN in ten Bulgarian projects.