The EBRD and Romania’s Alro have reached a deal to provide funding that will restructure Alro’s debt and increase cash flow. The USD 180 million deal is structured under the EBRD’s A/B loan program, meaning the bank will syndicate USD 105 million of the loan among commercial banks while holding the other USD 75 million itself.
The hope is that Alro’s improved cash situation will enable it to improve energy efficiency and significantly reduce carbon emissions. The investment fits with the EBRD’s Romanian strategy to help develop the country’s businesses in an energy-friendly manner.
Alro (www.alro.ro)
Alro SA is one of Romania’s largest industrial companies, producing processed aluminum for customers in Asia, Europe, the CIS, the Balkans, and the U.S. The company is based in the southern Romanian city of Slatina, where it operates smelting, casting, rolling, and extrusion facilities operated by more than 3,300 employees.
Annual production capacity is reported to be nearly 265,000 tonnes. Alro has been certified in both process and product according to ISO 9001, 14001 and 18001 standards.
In 2008 the company earned a profit of USD 83 million on total revenues of USD 825 million.
12/08/2010
Central & Eastern Europe, Industrial Products &Services, Investment, Private Equity News, Romania