Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

07 Oct 1997



PSD disclosed:

05 Sep 1997

Project Description

The project consists of the privatisation and modernisation of Arctic S.A., the leading Romanian white goods manufacturer.
The main project objectives are: to achieve the full privatisation of Arctic; to modernise the company's operations; and to introduce internationally acceptable corporate governance at one of the best-known public companies in Romania. The proceeds of the Bank's investment will fund part of Arctic's modernisation requirements.

Transition Impact

The project aims for the full privatisation of a high-profile publicly quoted company in Romania. Arctic will be the first company in the Bucharest Stock Exchange with 100 per cent private ownership.

The Client

Arctic S.A. is one of the largest white goods companies in Romania, with a significant market share in the domestic refrigerator market and substantial exports to the European Union. Arctic was one of the first companies in central and eastern Europe to introduce environmentally friendly, CFC-free refrigerators in their product range. Following partial privatisation in 1996, Arctic has been listed in the Bucharest Stock Exchange.

EBRD Finance

EBRD investment will consist of equity financing of up to US$ 6.8 million (ECU 6.3 million) and long-term loan financing of up to US$ 8.1 million (ECU 7.5 million). An investment fund will provide equity financing of up to US$ 6.8 million (ECU 6.3 million) with an international development bank expected to provide long-term loan financing of around US$ 4 million (ECU 3.7 million).

Project Cost

US$ 20.7 million (ECU 19.2 million).

Environmental Impact

The project was screened B/1, requiring an Environmental Analysis and Audit, which have been completed by an independent environmental consultancy firm. In the opinion of the environmental consultants the company has a satisfactory environmental management structure and a good occupational health and safety record. The operations of the company are in compliance with the environmental laws and regulations of Romania and the European Union. Some improvements are required regarding the storage of waste oil and diesel fuel and the removal of asbestos-containing materials. All of these issues are addressed by the Environmental Action Plan.

Technical Cooperation

Technical cooperation funding was provided for project preparation purposes.

Company Contact


Business opportunities

For business opportunities or procurement, contact the client company.

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