RDIF and EBRD back Cotton Way

CEE unquote, 24.01.2014

The Russian Direct Investment Fund (RDIF) and the European Bank for Reconstruction and Development (EBRD) have invested RUB 3.6bn ($109m) in Cotton Way, a Russian textile and laundry rental company.

The two firms split the amount equally. EBRD's RUB 1.8bn investment came in the form of a convertible loan.

Cotton Way will use the investment to continue the development and construction of energy-efficient laundry factories throughout Russia.

Cotton Way is headquartered in Moscow with additional offices throughout Russia, including in St Petersburg, Sochi, Novosibirsk and Omsk.

Cotton Way provides textile and laundry rental services to local and state organisations, as well as businesses. Its client base includes the Russian Ministry of Defence, Russian Railways, hotel chains, fitness clubs and hospitals.

The company's services are being used by several of the hotels constructed for the Winter Olympics in Sochi next month. At the end of last year, Cotton Way completed construction of Russia's largest commercial laundry facility at the Sochi Olympic site, to supply textiles and laundry to the athletes' village.

The company operates 12 manufacturing units and 30 warehouse complexes across Russia. It employs more than 2,000 staff.

Alexander Utkin is the CEO of Cotton Way. Kirill Dmitriev is the CEO of RDIF, while Natasha Khanjenkova is the managing director for Russia at EBRD. The two parties will take up seats on Cotton Way's board of directors following the investment.