The EBRD is considering making an equity investment of €15.5 million in Eurocable d.d.,, the leading producer and distributor of low voltage cables in Croatia, by participating in an increase of the company’s share capital. The purpose of the project is to assist the company in:
(i) The construction of a new production facility that would approximately double the production capacity from the current 16,747 tonnes of finished cables per year to 38,000 tonnes;
(ii) financial restructuring of the balance sheet by decreasing its financial leverage,
(iii) enabling the company to continue investing in its core business in the region.
The transition impact relates to corporate governance improvements and financial restructuring. The project will also enable the company to increase its production capacity in its core business, which will facilitate Eurocable’s regional expansion.
Eurocable d.d., the leading producer and distributor of low voltage cables in Croatia.
The EBRD is expected to provide a €15.5 million equity investment.
The proposed project is expected to cost approximately € 25.0 million.
Screened B/1. An environmental audit and assessment, (including a corporate EHS, social and labour policy review) was carried out in accordance with EBRD's requirements on the basis of an environmental site assessment and a field survey of the Project area and its surroundings (including the site of the proposed new facility). The environmental investigations confirmed that Eurocable’s production facility in Zagreb is well managed and controlled and meets all the requirements of EU standards including, ISO 9001-2000, ISO 14001 Environmental Management Certificate. The main production process simply involves the manufacture of cable and rope using copper and aluminium wire and a PVC coating. (Cooling water used in the process is collected and recirculated). The proposed new facility is still under consideration and will be located in a new industrial zone on the outskirts of Zagreb. The new facility will be constructed in accordance with EU, national and local requirements. An Environmental Action Plan (EAP) has been prepared as the result of the environmental due diligence and will be agreed with and implemented by the Sponsor. The major item included in the EAP involves the optimisation of water and waste water management through the provision of a closed water circulation system. As a result, significant cost savings, along with the recirculation and reuse of water, will be achieved
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