€4.5 million loan to support pre-privatisation restructuring
The European Bank for Reconstruction and Development (EBRD) is supporting the financial and operational restructuring of Paloma, hygenic papers, joint-stock company, with a €4.5 million loan that will help support its restructuring and recapitalisation process in the first phase towards privatisation. The signing of the contract between the EBRD and Paloma took place today in Ljubljana.
Paloma, which employs 740 people, is a joint stock company with 140 years of tradition in the production and marketing of hygienic paper products in Europe. It is a mainly export-oriented company and is present in more than 30 foreign markets. In south-eastern Europe it is regularly named among the 15 strongest brands in the consumer goods category.
The company produces around 68,000 tons of hygiene paper annually, which is processed into toilet paper, paper towels, handkerchiefs and napkins for household use and for professional use in the away-from-home segment. In 2014 the company has managed to improve sales by 3 per cent to €87 million and has achieved earnings before interest and taxes (EBIT) of €3.46 million.
The EBRD funding will support Paloma’s expansion goals by financing energy and resource efficiency improvements as well as working capital needs to increase the company’s ability to pursue its recapitalisation process and attract additional investments.
Paloma is currently being prepared for privatisation and it is expected that the first steps towards this goal will be completed in the coming months via a capital increase.
Jolanta Gabriel, EBRD Head of the Ljubljana office, said: “The EBRD is proud to make a contribution to Paloma’s transformation. Increased productivity and efficiency will allow the company to attract capital which will take Paloma to the next level of development in a highly competitive market.”