20.01.2014

The Russian Direct Investment Fund and the European Bank for Reconstruction and Development invest in the company Cotton Way

The company Cotton Way is the leader of the Russian market of rental and professional handling of textiles reports on the conclusion of an investment deal with the Russian Direct Investment Fund (RDIF) and the European Bank for Reconstruction and Development (EBRD).

The total amount of RDIF and EBRD investments will be up to 3.6 billion rubles in equal shares. Interests of Cotton Way in this transaction were represented by an investment bank Renaissance Capital and law firm Herbert Smith Freehills to implement its full support. Cotton Way will send received financing to the program for the construction of modern high-tech energy-efficient laundries in key regions of Russia. Accents of the programs are investments in advanced technology, ensuring of environmental safety and socio-economic development of the regions where the company operates.

“When offering contemporary service and actively using the latest technology and best international practices, the company Cotton Way enhances the effectiveness of Russian companies. Such a transaction meets one of the objectives of the investment strategy of RDIF aimed at improving the efficiency and competitiveness of Russian business", Kirill Dmitriev, General Director of RDIF said.

Natalia Khanjenkova, Managing Director of EBRD in Russia, stressed, "We are delighted that with the support of RDIF and EBRD Cotton Way will be able to significantly improve the standards of corporate governance, improve business transparency and efficiency of resource use, which is especially important for such companies. This project is consistent with the initiative of EBRD in the field of sustainable resource management, which involves the most efficient use of water, energy and other resources".

RDIF and EBRD investments allow the company Cotton Way to strengthen its market position and expand the coverage of customer segments, in which Cotton Way promotes service of textiles rental, new for Russia and popular in Europe.

Today the company provides customers state, municipal and commercial sector with "turnkey" textiles, such as JSC "Russian Railways", Ministry of Defense, as well as medical institutions, networks of fitness clubs and hotels, including the ones erected for the 2014 Games in Sochi. To meet the needs of the growing hotel infrastructure in the region, the company has built  the industrial laundry, the largest in the CIS, which is a target of federal significance. This laundry was the first production under the program, in support of which the investments of RDIF and EBRD will be sent.

For the company Cotton Way past signing of investment deal is a significant event. This is a serious evaluation not only of our company, but also, above all, the development of young and dynamic textile rental industry for adapt which to the Russian market our company has made great efforts. This investment will significantly improve the industry productive capacity of our country", said Alexander Utkin, General Director of the company Cotton Way.

 

Cotton Way is a founder and leader of the Russian market of rental and professional handling of textiles. Cotton Way has 12 production and 30 warehouses throughout Russia. The company is represented in most cities-millionaires: Moscow, St. Petersburg, Kazan, Nizhny Novgorod, Novosibirsk, and Omsk. Staff consists of more than 2,000 people. The company Cotton Way has the International Certificate of Conformity ISO 9001:2008, as well as the certificate of the German standard washing Institute Hohenstein RAL-GZ 992. Further information can be found on the website: www.cotton-way.ru

 

RDIF was founded in June 2011 for the purpose of equity investments mainly in the territory of Russia. Fund Management Company is a 100% subsidiary of Vnesheconombank. Within each investment undertaken by them RDIF must ensure that co-investment, which in magnitude is at least equal to the embedding of the fund. Thus, the fund acts as a catalyst for direct investment in the Russian economy. Further information can be found on the website: www.rdif.ru

 

EBRD is a development bank, owned by 64 countries and two international organizations. It supports the development of a market economy and democracy. In 2013, the EBRD has invested 50 million euros to form CapMan Russia II fund, which invests in small and medium-sized businesses. Further information can be found on the website: www.ebrd.com

 

Renaissance Capital is a leading investment bank which activities are concentrated in Russia, Central and Eastern Europe, Africa , Asia, as well as other high-opportunity emerging and "frontier" markets. The company also offers its clients access to these markets through global financial centers. Investment Bank has its offices in London, Moscow, New York, Istanbul, Johannesburg, Lagos, and Nairobi. Further information can be found on the website: www.rencap.com



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