EBRD provides USD 180 million refinancing package to Alro Romania

Newsroom 09/08/2010 | 07:53

The EBRD is providing a $180 million syndicated refinancing package to Alro, an important European aluminum producer, helping the company move into higher value added products and improve energy efficiency.

Structured under the EBRD’s A/B loan scheme, the Bank will retain $75 million on its account, with $105 million to be syndicated to commercial banks. The EBRD loan will refinance Alro’s existing debt, consolidating and restructuring it on a longer term basis. The project will improve the company’s cash flow, helping it to finance its investment programme. A central focus of the investment will be on improving energy efficiency thus reducing carbon emissions by ten percent.

“We are pleased with the outcome of the negotiations, as it recognises the soundness of our business, the potential for growth and the solidity of our programme for overcoming the effects of the international crisis. We are committed to pursue our long term strategy of vertical integration and focus on higher added value products”, said Marian Nastase (in picture), Vice-President of the Board at Alro.

Listed on the Bucharest Stock Exchange, Alro is one of Romania’s largest industrial companies, employing over 3,300 people. It is majority owned by Vimetco NV, a vertically integrated producer of primary and processed aluminum products.

Since the beginning of its operations in Romania, the EBRD has committed €4.7 billion across more than 270 projects, which attracted additional investment of €8.3 billion.