The EBRD is providing a €20 million loan to Cersanit Invest, a ceramic tiles producer operating in Ukraine, to support the company’s drive to increase its production volumes.
Majority-owned by Cersanit SA, the largest Polish manufacturer of complex bathroom fittings and ceramic tiles, Cersanit Invest currently produces seven million square meters of tiles and one million pieces of sanitary ware at its Novgorod Volynskiy plant, in western Ukraine.
The EBRD investment will enable Cersanit Invest to increase its production to 12 million square meters of tiles and two million pieces of sanitary ware.
The project will benefit the local construction materials market by offering a competitive alternative to the more expensive imported products, while helping Cersanit to optimise its production capacity through lower costs.
The EBRD loan follows an earlier investment worth €80 million made by the Bank in 2007 to finance the establishment of Cersanit Invest’s production facility in Ukraine. The EBRD currently holds a minority stake in the Ukrainian company.
“The project represents a cross-border investment between Poland and Ukraine and demonstrates the strength of EBRD’s relationship with Cersanit group, a long term client of ours,” said Lucyna Stańczak, EBRD Director for Poland.
Ukraine country director André Küüsvek added: “The transaction is an example of EBRD strategic response to the current economic crisis. The corporate sector needs access to funding and in the absence of commercial lenders, the EBRD steps up its support to companies with transparent shareholding structures, strong management teams and competitive products.”
The EBRD financing is part of the €250 million Mid-Sized Corporate Support Facility, established in order to support the Bank’s existing and recent clients in the current difficult environment.
The EBRD is one of the largest investors in central and eastern Europe. To date the Bank has invested €4.3 billion in Ukraine and €3.6 billion in Poland.