Alpha Bank extends a long-term financing of nearly EUR 70 million to eMAG, for its first regional logistics hub outside Romania
Alpha Bank has granted nearly EUR 70 million financing to eMAG, the largest Romanian online retailer, in support of the construction of the state-of-the art, up to 120,000 sqm capacity eMAG Logistics Center near Budapest, Hungary, representing a total investment of more than EUR 100 million. In the first phase of the project, covering the bridge financing, EUR 30 million were disbursed in December 2022.
This development marks the first large-scale logistics investment outside Romania, as part of the growth of eMAG’s ecommerce ecosystem in the region. The company is also committed to complying with BREEAM Excellent certification standards for green buildings, to optimize energy consumption and limit greenhouse gas emissions.
“Joining forces with the 40,000 sellers listed in eMAG Marketplace, we are currently the universal shopping platform for 9 million clients in Romania, Hungary and Bulgaria. The recent finalization of the merger with Extreme Digital strengthens our position in Hungary where we are the leading ecommerce platform according to GKid and the largest Romanian company. The investment in the logistic center of over 100,000 square meters near Budapest, the largest in Central and Eastern Europe, accelerates the development of our ecosystem across the region and enables cross border expansion for eMAG Marketplace sellers. We are delighted that ALPHA BANK, our long-standing financial partner, shares our confidence in the potential of ecommerce in the years to come”, stated Tudor Manea, CEO eMAG.
“Alpha Bank remains an honest partner of the Romanian business environment, supporting the international expansion of its clients so that national champions become regional leaders. We appreciate and support our clients’ ambitions for regional development through sustainable investments and promotion of a business model based on respect for the environment and responsibility for the future. We hope that eMAG’s example will be widely adopted by the representatives of the Romanian business community”, stated Sergiu Oprescu, Executive President of Alpha Bank Romania and General Manager of the International Network of the Alpha Bank Group.
“As a leader in business lending in Greece, Alpha Bank’s financing of eMAG’s first logistics hub project in the Central and Eastern Europe region, reiterates our Bank’s commitment to financing added-value projects that accelerate regional players’ formation, and contribute to attaining sustainable economic, societal, and environmental growth”, stated Yannis Emiris, General Manager Wholesale Banking at Alpha Bank.
Alpha Bank would like to thank all the advisors who have contributed to the success of this project, as well as Ana Radnev, CMS (Lender Legal Advisor), for the multijurisdictional solutions provided.
Alpha Bank is the first private foreign Bank to have established operations in Romania back in 1994 and since then, it has been building and consolidating long-term relationships with large corporates. In the past, eMAG and Alpha Bank have collaborated to implement solutions aimed at providing the retailer’s customers with innovative payment solutions, such as: Instant Money Back – the 1st implementation in Europe (followed by similar implementations, including in Hungary); POS Sharing at eMAG showrooms; OFF-US installments with VISA implementation; unattended POS integration at Sameday Easybox lockers; SoftPOS for Freshful couriers, etc.
Founded in 2001 in Romania, eMAG is a pioneer of the online commerce market in Romania, and in 2022 it became the most valuable Romanian brand and the first ecommerce company to take first place in the Brand Finance ranking. For over 20 years, the company has been constantly investing in digital services based on technologies developed in Romania, which help customers save time and money, and has created a regional ecosystem, successfully exporting the local model to Bulgaria and Hungary. With an ever-growing range of products supplied together with Marketplace partners, eMAG is the place where anyone can search and order anything, anytime, anywhere. Customers benefit from value-added services such as the mobile application, fast delivery to easybox, Genius free delivery subscription in 4 ecommerce apps (eMAG, Tazz, Fashion Days, Freshful), 30 days right of return, quick refund via Instant Money Back, package opening on delivery, flexible payments services such as Buy now, pay later or Slice it.
About Alpha Bank Romania
Alpha Bank Romania is a member of Alpha Bank Group, one of the largest banking and financial groups in Greece, founded in 1879 by J.F. Costopoulos. The international activities of the Group are extended, in addition to Romania, to the United Kingdom, Luxemburg and Cyprus.
Alpha Bank Romania is a financial institution ranked among the top 10 banks in the country, with universal banking operations. A systemic bank, with a national presence of over 27 years, Alpha Bank Romania offers a wide range of modern services and products.