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This communication does not constitute an offering of securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Synthos Finance AB (publ) does not intend to register any of the securities in the United States or to conduct a public offering of the securities in the United States.
This communication does not constitute an offer of the Securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the Securities. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document or any of its contents.
€50 million investment in Synthos S.A.’s tap offering of 4.000% Senior Notes
The European Bank for Reconstruction and Development (EBRD) is supporting innovation in Poland’s chemical sector by investing €50 million in bonds issued by Synthos S.A., one of the largest manufacturers of chemical raw materials in the country.
Proceeds from the EBRD’s investment will be used to support Synthos’ development and modernisation programmes including construction of a new, state-of-the-art specialty rubber production facility as well as research and development (R&D) activities in Poland. In connection with the EBRD investment, Synthos will undertake additional commitments including compliance with social and environmental standards and the adoption of an environmental and social action plan.
Through the investment, EBRD is helping to address one of the biggest challenges in the Polish economy, namely the low level of innovation and R&D investments among local companies. The financing will support the construction of a new production which will introduce the most modern synthetic rubber production technology in Poland. The investment is also expected to benefit manufacturers, among them global market leaders, with production lines close to Synthos’ site.
The financing will be also pivotal in closing the R&D gap between corporations and leading academic centres by supporting the recently established R&D centre at Synthos. Key strategic areas of the centre include synthetic rubber, expandable polystyrene plastics and dispersions/adhesives. Synthos is working closely with reputable universities and institutions in Poland and abroad as well as maintaining close relationships with major customers.
The EBRD Director for Poland, Grzegorz Zieliński, said: “We are impressed with the efforts Synthos is making to be at the forefront of cutting-edge technology and the latest developments in the market. This is setting an example for the whole industry in Poland and the EBRD is proud to support this. The new R&D centre will enable the company to participate in future development works or joint tests of new products and thus play a crucial role in its future.”
Synthos S.A. CEO, Tomasz Kalwat said: “We are very satisfied with our cooperation with EBRD which allows us to strengthen our growth by implementing high standards in our environmental and social policies. The participation of EBRD in the financing of our Group will have a very positive impact on the products we develop and widening the portfolio of our clients.”
The EBRD funds are extended through an investment in Synthos S.A.’s tap offering of 4.000% Senior Notes due 2021, through its subsidiary Synthos Finance AB (publ). The initial issuance of €350 million of Synthos Finance AB (publ)’s 4.000% Senior Notes due 2021 was in September 2014.
Synthos S.A. with over 2,200 employees, is one of the leading manufacturers of chemical materials in central and eastern Europe and the leading producer of synthetic rubber, the fourth largest producer of polystyrene in Europe and the leading producer of expandable and extruded polystyrene in Europe.
Synthos S.A. is listed on the Warsaw Stock Exchange with a market cap of PLN 5.7 billion (ca. €1.4 billion) and is a member of the WIG20 blue chip index.
Since the beginning of its operations in Poland in 1991, the EBRD has invested €7.38 billion in almost 350 projects in the country. In 2014 alone the Bank financed 25 projects with a total commitment of €600 million, mainly in financial institutions, energy, corporate, industry and infrastructure.