Tele-Fonika Kable S.A.

Location:

Poland

Project number:

48731

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

20 Jun 2017

Status:

Repaying

PSD disclosed:

21 Jul 2017

Translated version of this PSD: Polish

Project Description

Provision of a senior secured loan to TELE-FONIKA Kable S.A. (the "Company" or "TF Kable"), the largest cable and wire producer in Central and Eastern Europe with headquarters in Poland. The loan will be used for the refinancing of the existing debt and for the financing of planned investments in innovative cable solutions and related R&D.

Project Objectives

The continuation of the existing operation shall enable further implementation of the operational strategy to develop innovative solutions for the cables market.

Transition Impact

The Project is expected to reinforce the transition objectives set under the existing operation signed in 2015 as well as achieve new, more ambitious benchmarks stemming from demonstration of replicable behaviour and corporate governance improvements. The expected transition impact of the Project comes from the continuation of the first project's comprehensive balance sheet strengthening needed to further implement the operational strategy based on developing innovative solutions for the cables market. Successful transformation would have a strong demonstration effect to the whole mid-to-large business landscape on the Polish and foreign markets.

Client Information

TELE-FONIKA KABLE SA

TF Kable, founded in 1992, is a leading cable manufacturer in Poland with a diversified product portfolio, more than 3,000 employees working in 6 production facilities and delivering cables to over 80 countries. TF Kable is fully owned by its chairman, Mr Boguslaw Cupial.

EBRD Finance Summary

PLN 289,600,000.00

EBRD is providing a term loan in the amount of PLN 289.6 million.

Total Project Cost

PLN 1,792,000,000.00

The total Project's debt financing amounts to PLN 1.65 billion and is provided together with a group of leading banks in Poland.

Environmental and Social Summary

Categorised B (ESP 2014). Environmental and social issues associated with the operation of heavy and precision engineering facilities are site specific and can be readily assessed and mitigated. The Environmental and Social Due Diligence (ESDD) undertaken in-house by ESD confirmed that the Company has the institutional capacity to fully implement the Bank's PR's, and is generally in compliance with National and EU regulations. The Company has a good EHS management system and is implementing best practice, with the key sites certified to ISO 14001 and OHSAS 18001. The Bank has a good relationship with the Company and a corporate Environmental and Social Action Plan (ESAP) was agreed in 2015 and has largely been implemented by TF Kable, particularly in relation to ongoing ISO 14001 certification of operational sites in Poland, corporate roll out of OHSAS system, compliance review of sites in Serbia, confirmation of compliance with IED directive, and formalisation of the grievance mechanism.

The current investment will assist in financing of previously assessed CAPEX and R&D projects, which are designed to implement state of the art technology, and are permitted by the Competent Authorities. The ESDD identified the need for some further strengthening of corporate EHS management systems to encompass oversees facilities and inclusion of labour risks assessment in the Company suppliers and constructors assessment procedure. The Company is in the process of developing a corporate CSR system, which following EBRD recommendation will be rolled out to entire Group of companies and will result in preparation and disclosure of sustainability reporting for the group in line with GRI requirements.

The previous Environmental and Social Action Plan (ESAP) has been revised and is aimed at further strengthening of corporate EHS management systems and ensuring compliance with the Banks PRs.

Technical Cooperation

None.

Company Contact Information

TELE-FONIKA Kable S.A.
https://www.tfkable.com/
Hipolita Cegielskiego 1, 32-400 Myslenice

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