EBRD grants EUR 5 mln loan to Grupo Industrial Roquest for greenfield plant in Romania

Newsroom 19/02/2014 | 14:12

The European Bank for Reconstruction and Development (EBRD) said on Wednesday it granted a EUR 5 million loan to Spain’s Group Industrial Roquest, which will be used to co-finance the construction of a new greenfield plant near Ploiesti.

The company makes hydraulic equipments in four plants in Spain. Construction on the new unit should start this April, with production set to kick off next year. The company will make in Romania larger diameter cylinders, which are mainly used in agriculture and constrictions machinery.

“The EBRD is keen to support Roquet’s investment as it represents the kind of investment which is crucial for the sustainable and long term development of the country’s economy,” said James Hyslop, EBRD director, Romania.

Roquest said the new plant is designed to cover rising demand for its products and that Romania was selected because of its “competitive advantages”.

The loan is provided under the Local Enterprise Facility worth EUR 400 million, which targets companies in the Balkans, and in southern and eastern Mediterranean region. It provides a wide range of financial products, including equity and debt financing for companies.

The loan also benefitted from EUR 40,000 in Technical Cooperation funds, used to support the implementation of the investment.

The EBRD has invested around EUR 6.6 billion across over 356 local projects, mobilizing over EUR 14 billion for these ventures from other financing sources.