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EBRD supports leading industrial company in Estonia
As part of its strategy of supporting Estonia's private sector development, the European Bank for Reconstruction and Development (EBRD) is providing a DM 13 million (ECU 6.5 million) loan to the car safety belt manufacturer Norma, a leading industrial company in Estonia. An additional DM 2.0 million (ECU 1 million) loan will be financed by the Estonian Investment Bank, a leading financial supporter of Estonian export-oriented manufacturing enterprises.
Signing the project in Tallinn, Alain Pilloux, EBRD's Director for the Baltics, Czech and Slovak Republics and Poland, said: "The EBRD's loan will enable Norma to access long-term financing to increase its competitiveness and reach the highest quality standards. The EBRD's involvement as a lender will help Norma in its negotiations with potential strategic partners, and in dealing with its existing and future clients." He continued: "We are delighted to co-finance this project with the Estonian Investment Bank and hope to enter into further joint operations with leading Estonian banks in the near future."
Dauno Vanaselja, EstIB's Head of Lending, commented: "The EstIB sees this transaction as a next step in long-term fruitful cooperation between the EBRD and Norma."
The proceeds of the EBRD's loan will be used to finance the modernisation of Norma's equipment and technology, and the renovation of its facilities. It will also finance the main portion of Norma's capital expenditure planned for 1998 and for the first months in 1999, including DM 1.1 million in investments for environmental improvements.
Norma was introduced to the EBRD via the TurnAround Management (TAM) programme, and in connection with the proposed loan, TAM will continue to assist the company. The objective of TAM is to provide industrial management know-how to selected industrial enterprises, so that these companies can increase their competitiveness.
Founded 107 years ago, Norma began the production of car safety belts in the early 1970s, and was the only supplier to automobile manufacturers in the former Soviet Union. It maintains a leading position in the CIS automobile market as a safety belt manufacturer by supplying 76.4 per cent of the safety belts required by the Russian automotive industry. Norma is the fourth-largest company by market capitalisation on the Tallinn Stock Exchange.
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