|
Syndicate closed on Trebruk/Kostrzyn financing
The syndication of a European Bank for Reconstruction and Development (EBRD) US$ 31.75 million limited recourse loan to the Polish fine paper producer, Kostrzyn Zaklady Papiernicze SA (Kostrzyn), was finalised on Monday 27 June.
Of the US$ 16.3 million syndicated, US$ 5.4 million has been taken by Creditanstalt-Bankverein and Nordbanken as participants in the EBRD loan. Two Polish banks, the Polish Development Bank (PDB) and Bank Rozwoju Eksportu (BRE), through a parallel loan financing arrangement, have provided another US$ 10.9 million with PDB (US$ 7.9 million) acting as an agent to BRE (US$3.0 million).
Charles Wrangham, Director of the EBRD's Poland team, said "We are very satisfied with the results of the syndication effort which reflect continued confidence in the Polish market by financial investors."
Proceeds of the loan will be used to upgrade two existing paper machines and modernise and expand related facilities, thereby ensuring the supply of high quality paper products to Kostrzyn's domestic and foreign markets.
Kostrzyn was privatised by the Polish Government in October 1993, with the majority of its shares being acquired by a consortium of trade and financial investors led by Trebruk AB, a Swedish forestry products group. As a specialist producer of fine paper with an annual turnover of about US$ 250 million, Trebruk will play a major role in the operational and financial restructuring of the mill, the training of Kostrzyn's work force and the implementation of sound environmental practices at the mill.
Other shareholders include Swedfund (16%), a limited liability company, administered by the Swedish International Enterprise Development Corporation; and Nefco (16%), a multi-lateral financial institution owned by the five Nordic countries.
The syndication and parallel financing was arranged by the EBRD.
The EBRD Loan Agreement was signed on October 7th, 1993.
|
