BSTDB extends a 60 million dollars loan to ALRO

Alro, the largest aluminium producer in Central and Eastern Europe, has concluded a 60 million dollars loan agreement with the Black Sea Trade and Development Bank (BSTDB).

2016-02-10 15:38:15

The facility will allow Alro to proceed with its investment programme for 2016, focused on increasing the efficiency of its operations, reducing energy dependency and improving overall competiveness.

"BSTDB aims to continue its support to member countries in the current globally lower growth environment. In line with the Bank's strategy to increase portfolio in Romania, we are pleased to help Alro, a major manufacturer and employer, in implementing its ambitious investment program in challenging times. We are strongly committed to support such leading companies in our member countries" said Ihsan Ugur Delikanli, BSTDB President.

"Our financing will help Alro to grow its value-added production capacity while increasing energy efficiency and sustaining environmental compliance. I believe that this facility would also help Alro to position itself as a leading supplier to high-tech industries, including aero-space. Furthermore, it will contribute to the company's expansion and will help create more jobs in Romania" added Delikanli.

"We work on a highly competitive global market, where low production costs and high products quality are key factors", said Marian Nastase, President of the Board of Alro. "The loan we secured from the Black Sea Trade and Development Bank will support our program to continue the investments in modern technology, increasing the production capacities and the quality of the products, while reducing specific consumptions".
Alro will reduce the energy dependency, by increasing the Eco Cast House scrap processing capacity. The Company will also improve competiveness, by extending the products' portfolio, increasing the quality of the products and reducing the delivery terms. The investment programme will also focus on ensuring the safety and the continuity of the technological processes in Alro.

"It is imperative that in such turbulent times for the markets, international financial institutions such as the Black Sea Trade and Development Bank and others, are stepping in as an additional factor of stabilization of the markets, especially where the commercial banking system has financial limits or regulatory boundaries. Such areas concerns especially instruments with longer tenors (5,7 and even 10 years) providing financing for capital expenditures, development, deleveraging etc. There is also an important opportunity for the Romanian companies, which benefits of a set of macroeconomic indicators very favourable to continue to invest and to develop their businesses", added Nastase.

Alro guarantees the loan with one or more immovable assets, movable mortgages, mortgages on the rights and receivables from insurance policies covering the Company′s assets and concluded in relation with the goods that are object of the guarantees created, as well as mortgage on all the shares of Alum, owned by Alro and all the shares of Conef SA, owned by Alro. The loan has a maturity of seven years, with semi-annual instalments starting month 24 following the first utilization. Zamfirescu, Racoti&Partners assisted the Company on the legal side.

Under the terms of the agreement, Alro will continue to conduct its business with due diligence, maintain accounting and cost control, pay all the taxes in due time and implement an agreed Environmental and Social Action Plan.