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EBRD provides $8.8 mln loan to SBK
The European Bank for Reconstruction and Development is providing an $8.8
million loan to Slobozhanska Budivelna Keramika (SBK), a leading facing and
ceramic brick producer in Ukraine. Loan proceeds will contribute to SBK’s
investment programme, which envisages construction and launch of a greenfield
plant for porous brick production blocks in Kiev region. It will also help to
upgrade and expand the existing production lines at SBK plants located in the
regions of Ukraine (cities of Kharkiv, Romny and Irpen).
This deal marks a successful continuation of the EBRD and SBK relationship
following the acquisition of 12 per cent of SBK shares by the Bank, which was
completed in April 2007. The Bank is planning to increase its stake in the
company to 25 per cent plus one share by the end of 2007.
After the completion of the investment programme, partially funded by this
transaction, SBK is expecting to nearly double its capacity to more than 250
million brick units per year by the end of 2009.
Slobozhanska Budivelna Keramika will achieve the highest EU environmental
standards by introducing the latest environmentally sound technologies from
leading European equipment producers and improving the environmental and
energy efficiency standards of new buildings in Ukraine. In particular, SBK
will start production of Poroton-type bricks - one of the most ecologically
friendly modern walling materials.
It should also be mentioned that the transaction has the potential to increase
consumer choice by expanding the range of available products. Finally a
successful greenfield investment is likely to lead to the entry of other big
players in the Ukrainian brick market.
According to SBK President Igor Dalichuk, EBRD’s participation in projects
implementation not only as a shareholder of the company but also as a
financial partner is SBK’s strategic achievement. This agreement will make a
significant contribution to company’s long term objectives. It will help to
double the existing output and introduce new products – clinker bricks and
porous ceramic blocks – to realise complex construction solutions, he said.
The European Bank for Reconstruction and Development is the biggest financial
investor in Ukraine. As of the end January 2007 it had committed over €2.87
billion through more than 130 projects.
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