Romanian aluminium producer Alro SA successfully closed two deals with local and regional banks this week – a loan with Black Sea Trade and Development Bank (BSTDB) for US$60 million, and another with a conglomeration of domestic banks on a revolving facility agreement valued at US$137 million.
The loan with BSTDB was announced on Tuesday is meant to allow Alro to continue increasing operational efficiency, reducing energy dependence, and improving competitiveness in 2016.
“We work on a highly competitive global market, where low production costs and high products quality are key factors,” said Alro’s President of the Board, Marian Nastase. “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.”
The firm plans to increase capacity at Eco Cast House, which Alro hopes will decrease energy dependency. Alro will increase the quantity and quality of products offered, and decrease delivery times to make it more competitive in the aluminium market. Alro also intends to use proceeds from the loan to fund continuing technological projects.
The second note announced this week is a refinancing of a previous revolving credit facility of US$120 million with the European Bank for Reconstruction and Development, negotiated in 2010. The banks involved include Raiffeisen Bank International and Raiffeisen Bank Romania, Unicredit Bank, OTP Bank, Eximbank, Garanti Bank, Intesa Bank, and Transilvania Bank, among others.
“The conclusion of this facility proves that Alro is a solid company, with strong operational results and a sound long-term development program,” said Alro’s President of the Board, Marian Nastase. “The agreement is part of our strategy to consolidate our business and to focus on high efficiency of our operations.”
Collateral for both loans includes rights in various mortgages and liens on movable assets, insurance proceeds, and stocks held by Alro.
Alro was founded in 1963 and is based in Slatina, Romania. The firm, a subsidiary of Vimetco N.V., has an installed capacity of 265,000 metric tons per year, making it one of the largest producers in Central and Eastern Europe.