The European Bank for Reconstruction and Development is to acquire a minority stake in Russian mineral water company JSC Narzan. The move, announced today, is part of a $12.25m combined loan and equity investment.

The EBRD financing package will help Narzan expand its bottling capacity, develop new products and provide it with working capital.

The Narzan spring, located in Kislovodsk in the southern Stavropol region, was documented for the first time in the early 18th century. Its mineral water has been bottled since 1894.