| Project Detail |
Location:
Romania
Project number:
40875
Business sector:
Manufacturing and Services
Notice type:
Private
English-language PSD published:
02 Dec 2024
Project Description
This PSD relates to a historical Bank project approved some years ago, and does not represent a new approval, or allocation of new funds. Disclosure of this PSD was deferred in accordance with the transparency framework in place at the time, but due to an administrative oversight, was not subsequently disclosed
In June 2010, the EBRD played a catalytic role in the refinancing of most of the existing debt of Alro S.A (‘the Company’).
As a result of the global financial crisis, the structure of the Company’s loan portfolio affected its financial flexibility, putting great pressure on liquidity reserves. This had a negative effect on the Companys ability to gradually shift its production towards higher value added and better quality products. The stabilisation of the financial situation allowed the Company to carry out an investment program of USD 50 million between 2010 and 2012, which focused on improving the quality and range of products, including important projects aimed at increasing energy efficiency. These investments, together with an action plan regarding aspects related to the environment, health and labour protection were supported by the financial restructuring.
Project Objectives
The transaction was proposed in order to allow for refinancing of the Company’s existing debt, to stabilise balance sheet and mitigate financial risks such as cash flow shortages, in turn enabling the Company to proceed with its proposed investment programme for the improvement of the quality and range of its products and implementation of its environmental, health and safety action plan. |
