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European Bank signs US$ 9 million loan for greenfield site
The European Bank for Reconstruction and Development has signed a loan agreement of US$ 9 million (ECU 7.4 million) for the construction and start up of a greenfield carbon black plant that will become a major new supplier to the European rubber and tyre industry. The loan is being made to Columbian Tiszai Koromgyarto Kft., a new Hungarian company, which is 60% owned by Columbian International Chemicals Corp and 40% by Tiszai Vegyi Kombinat, RT, one of Hungary's leading chemical companies, currently under privatisation.
Ron Freeman, First Vice President for Merchant Banking, said "The creation of a state-of-the-art production plant on a greenfield site will make an important contribution to the region's long term economic development and will generate significant export earnings."
Mr Freeman added that the project was an important development as it was one of the first greenfield projects that the Bank has been involved with, requiring a full environmental audit and assessment with public participation.
The loan is part of a debt financing package of US$ 33.5 million, which is being co-financed with the U.S. Overseas Private Investment Corporation (OPIC), and represents the Bank's first co-financing agreement with that organisation in Hungary.
Through its New York and London based asset finance group and its wholly-owned Budapest subsidiary, Bankers Trust has advised the joint venture throughout all stages of the project and acted as sole financial arranger for the funding package.
The company will invest US$ 55 million
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