EBRD supports business recovery in Serbia

By Svitlana  Pyrkalo
@pyrkalo

The EBRD is supporting the further development of Nissal, one of the leading Serbian aluminium processors, with a €4 million loan that will help it recover from the impact of the global economic crisis.

The investment will be used to refinance existing loans and provide working capital financing to the company. The funding will contribute to a restructuring of Nissal’s balance sheet, improving the maturity structure of its liabilities and strengthening it as it gears up for future business.

As a result of the Bank’s involvement, another existing creditor will extend the maturity of its remaining debt and approve letter of credit and guarantee line in order to support the planned growth of the operations.

Nissal processes aluminium into profiles, bars, doors, windows and facades. It exports to Germany and Russia, as well as to the neighbouring countries.

 “The EBRD is pleased to support Nissal’s growth strategy. This project will help Nissal improve its balance sheet and help production recover and exceed pre-crisis level. It will become a more competitive player on European markets”, said Hildegard Gacek, the EBRD’s  Director for Serbia.

"The agreement with the EBRD will help us recover from the crisis and enable us to focus on operations and new business generation. EBRD involvement was important for rescheduling other debt and now we can concentrate on expanding geographically and increasing market share in existing markets", said Goran Vukovic, majority owner and President of the Board of Directors of Nissal.

The project is financed under the EBRD - Italy Local Enterprise Facility*.

Since the beginning of its activity in Serbia, the EBRD has committed over € 2.5 billion in various sectors of the Serbian economy, mobilising additional investment in excess of € 3 billion.

        *The EBRD-Italy Local Enterprise Facility (LEF) is a €270 million proprietary investment vehicle for small and medium-sized enterprises (SMEs) in Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia, Montenegro, Romania, Serbia and Turkey. It provides long-term financing to such businesses because their needs are not sufficiently addressed by existing financing facilities.