OREANDA-NEWS. July 26, 2011. Belarusian OJSC Krinitsa plans a third debenture bond issue in August 2011, amounting to 3-4 billion Belarusian rubles (Br), Krinitsa General Director Grigory Petkevich told reporters on Wednesday.

“Bonded loans have proved efficient, and we consider offering a third issue, totaling 3-4 billion rubles,” he said.

Earlier, Belarusian Krinitsa and OJSC Belagroprombank offered an 8 billion-ruble debenture issue in late 2010 and a 13 billion-ruble issue in February 2011. The bond issues helped replenish floating capital and cover the budget deficit.

Petkevich also said Krinitsa had sent a proposal to Belgospischeprom about an additional share issue.

“We have proposed an additional issue in order to replenish floating capital. As for our strategy, we are still confident in our potential, and we believe we need to increase equity by way of an additional share issue. We need capital that we won’t have to repay, because further reliance on loans is detrimental.”

“We relied on loans during each development phase, but we have been unable to form adequate reserves; therefore, we have a sharp deficit of floating capital because of the market situation and the devaluation,” Petkevich said.

He also said the administration of the plant did not plan to change the ownership of Krinitsa, which is likely to remain state-controlled. Petkevich explained that after the state injected funds in the brewery, it can operate without altering the ownership structure.