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EBRD and Citibank support expansion of Slovalco
$75 million syndicated loan extended to the Slovak aluminium producer
The production capacity of Slovalco a.s., the Slovak aluminium producer, will be expanded thanks to a $75 million syndicated loan jointly arranged by Citibank (based in the Slovak Republic) and the European Bank for Reconstruction and Development (EBRD). Sumitomo Mitsui Banking Corporation and local banks Tatra banka and Polnobanka participated in the syndication.
The project is part of a modernisation programme that should significantly improve Slovalco's competitive position. Alexander Auboeck, the EBRD's Team Director for the Slovak Republic, said: "We've been supporting Slovalco since 1994. This project gives a further boost to its efforts to adopt high standards of corporate governance and transparency and to succeed in international markets."
"We are pleased with the level of interest banks have shown in this transaction," said Igor Tham, Corporate Bank Head and Member of the Board of Directors at Citibank (Slovak Republic) a.s. "It reflects Slovalco's new shareholding structure, the company's credit quality and the Slovak Republic's improving country rating."
Slovalco was established in 1993 as a subsidiary of ZSNP, a Slovak state-controlled aluminium manufacturer, to complete and operate a state-of-the-art aluminium smelter, allowing inefficient and polluting production units to be shut down.
Together with other modernisation programmes, the company expects to increase the production of primary aluminium from 109,000 tonnes currently to 155,000 tonnes in 2004. Combining primary aluminium and remelting, total output in 2004 could reach 180,000 tonnes of aluminium casthouse products.
In March 2001 the EBRD, together with Norway's Norsk Hydro, acquired 40.8 per cent of the outstanding shares of Slovalco, with each acquiring 40 per cent of the voting shares. ZSNP continues to hold a 20 per cent share of the voting rights.
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