The EBRD is supporting an important local Ukrainian manufacturer with a financing package that aims to raise governance and environmental standards throughout the country's steel tubes and pipes sector.
The €58 million funding to CJSC Centravis Production Ukraine, a world leader in the seamless stainless steel tube (SSST) and pipe market, will include an equity investment of €10 million as well as a loan of €48 million. Up to €33 million of the loan will be syndicated to commercial banks.
This project, which is part of the Bank’s crisis response in Ukraine, is designed to restructure Centravis’ balance sheet and improve its equity position.
It will also help introduce international environmental and social standards at Centravis and promote them in the entire domestic SSST industry. The Bank’s participation in the company’s equity will serve to strengthen its corporate governance standards, thus creating a benchmark for other large Ukrainian corporates.
EBRD Ukraine Director André Küüsvek said: “In these difficult times for the country we are trying to identify and support industry leaders in sectors with good medium terms prospects. This support is crucial for large domestic producers and for Ukraine’s economy as a whole. Centravis, as a key global player, clearly falls into this category. The Bank is happy to help the company become more resistant to the crisis and to support its future development”.
Yuriy Atanasov, CEO of the International Holding Centravis said: “An integral indicator of the company’s financial health is its ability to attract new investments. Centravis is receiving a very substantial financial package from the EBRD. We have worked hard to achieve this result. This year Centravis is completing a complex program of technical modernisation of the production base worth over $120 million. We have expanded our products range and our distribution network - now exporting tubes to 70 countries all over the world. The EBRD support will help us realise all strategic initiatives”.
The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of 1 October 2009, it had committed over €4.5 billion through 189 projects.
CJSC “CENTRAVIS PRODUCTION UKRAINE”, created on the basis of Nikopolskiy South-pipe Plant, is a production platform of International Holding CENTRAVIS. General production volume in 2008 made up 16 580 tons, Holding’s turnover was $257 millions. Visit Centravis website: www.centravis.com
The EBRD, owned by 61 countries and two intergovernmental institutions, is supporting the development of market economies and democracies in countries from central Europe to central Asia. Visit the EBRD’s website: www.ebrd.com