The European Bank for Reconstruction and Development (EBRD) and MK Group, long-time partners, signed a loan agreement worth 40 million euros at the EBRD Consumer Rules Summit in Montenegro. The signatories were Jean-Marc Peterschmitt, Executive Director for Corporate Sector at EBRD, and Mihailo Janković, General Director of MK Group. This marks an important milestone in a nearly two-decade-long partnership, highlighting the significance of the joint commitment of MK Group and EBRD to sustainable development.
The EBRD loan of 40 million euros represents the first sustainability-linked loan for MK Group and will facilitate the company in diversifying its business. Specifically, MK Group will use the loan to invest in and open the Sunal alcohol factory, making Serbia an alcohol exporter for the first time in its history. The state-of-the-art alcohol factory in Kovačica will produce food and medical alcohol, as well as bioethanol, with a production capacity of 30 million liters of alcohol per year. The loan will also be used for the development of the wine business of the Erdevik winery, which operates within MK Group.
The collaboration between EBRD and MK Group will also contribute to improvements in environmental protection and digitalization, with MK Group expecting to reduce greenhouse gas emissions by 30% by 2032 and enhance cybersecurity and digital infrastructure through technical support from EBRD, aiming to strengthen sustainability, resilience, and competitiveness.
MK Group is one of the leading companies in Southeast Europe, operating in Serbia, Montenegro, Croatia, and Slovenia, and is known for its exceptional results in agriculture, tourism, real estate, and renewable energy. Over its first 40 years of operation, MK Group has invested 1.6 billion euros in its development and has announced a new investment cycle of the same amount, with an additional 1.6 billion euros to be invested in future projects.
EBRD is the leading institutional investor in Serbia, having invested over 10 billion euros through 390 projects, most of which have supported the private sector. EBRD’s priorities in Serbia include enhancing the competitiveness of the private sector, productivity, and access to financing.