Syzran sanitary ware plant to expand and modernise

By Svitlana  Pyrkalo

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The EBRD is providing long-term financing to support restructuring, modernisation and expansion of a sanitary ware plant located in Syzran, Samara Region, Russia. The plant, Syzranskaya Keramika, needs improvements to benefit from the fast-growing demand for sanitary ware in Russia. This deal will also promote foreign investment in Russia's regions, which remain underserved by foreign capital and cross-border investment in general.

EBRD will arrange long-term financing of up to €35.5 million, of which up to €7 million denominated in roubles, for a group of companies (Glemarco, Pilkington's East and the plant, Syzranskaya Keramika, all three wholly owned by  Polish entrepreneur Michal Solowow). As part of the deal, this group of companies-joint borrowers will closely cooperate with Rovese SA (formerly Cersanit SA), a company controlled by Michal Solowow.

Rovese SA is a Poland-based sanitary ware and ceramic tiles producer, listed on the Warsaw stock exchange, with a strong presence in Eastern Europe, and an established client of the EBRD.

The financing will be arranged according to an A/B structure where the EBRD will lend €23 million for its own account and arrange the remaining €12.5 million to be provided by other lenders.

"Cross-border trade, investment and cooperation in eastern Europe are important for the further economic development of the region. This deal demonstrates potential for Polish entrepreneurs abroad at the time when Poland demonstrates economic optimism despite the crisis", said Frederic Lucenet, the EBRD's Director for Manufacturing and Services.

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