|
EUR135 million for Romanian wood-processing firms
Longest-maturity loan yet to industrial sector in the country
Two Romanian wood-processing companies are borrowing a combined €135 million
from the EBRD to help prepare their acquisition by Kronospan Holdings Limited,
Europe’s leading producer of wood-based panels.
The loan will help support the financial restructuring of MDF Sebes, a
medium-density fibreboard and resin plant, and Sepal, a particleboard plant.
Both are owned by Italy’s Gruppo Frati. Following acquisition, the loan will
also help both companies remove production bottlenecks and expand production
capacity.
The EBRD will take €70 million, with a 10-year maturity, on its own books,
while the remaining €65 million, with a 7½-year maturity, is syndicated to a
consortium of Austrian banks in what is considered by industry experts a rare
combination: a large syndication for a private deal in Romania, as well as the
longest maturity for a private company in the country.
Hildegard Gacek, Director of the EBRD’s office in Romania, said the project is
important for Romania because the restructuring and ongoing modernisation of
such local companies can create internationally competitive wood-based panel
producers. Ms Gacek added that a good strategic investor with expert knowledge
in this industry will support further development of the Romanian construction
and export- oriented furniture industries.
In 2003 the Bank lent €45 million to a subsidiary of Kronospan Holdings
Limited in Russia. Prior to this the EBRD had assisted Kronospan with projects
in Poland.
Established in 1897, Austria’s Kronospan operates in 11 European countries and
focuses on three major areas, including wood-based panels, flooring, and
chemicals and paper. Kronospan is the global leader in manufacturing medium-
and high-density fibreboard, ranks first in terms of laminate flooring, and is
the third-largest manufacturer of special decor paper used in laminating MDF
and particleboard.
The EBRD is the largest investor in Romania with more than €2.4 billion
invested in projects ranging from banking to infrastructure to supporting
small and medium-sized enterprises. Working with its many partners, the Bank
has mobilised more than €7.5 billion in projects across the country.
|
