Romanian aluminium maker Alro to borrow EUR 70 mln for working capital, investments

Alro Slatina, the largest aluminium and aluminium alloy producer in south-eastern Europe, controlled by Russian investors, approved a USD 70 million supplement to a credit facility contracted in 2015 through a USD 167 million syndicated loan. Separately, according to unofficial sources, Vimetco hired Swiss Capital for selling part of its 84% stake in Alro, after a failed offering carried in the summer of 2018, local Ziarul Financiar reported. The bank syndicate that finances Alro includes Raiffeisen Bank International, OTP Bank Romania, Banca Transilvania, Unicredit Bank, Garanti Bank, Intesa Sanpaolo Bank Romania and Eximbank. Out of the additional contracted amount, USD 20 million is intended to cover the company's general and working capital needs and USD 50 million will finance program-related investment expenditure for the years 2018-2019. Alro ended the first nine months of 2018 with a net profit of RON 203 million (USD 49.5 million). The company has a capitalization of RON 2.4 billion (USD 585 million) and Russian group Vimetco is the majority shareholder with a 84% stake while investment fund Proprietatea Fund owns 10.2%. In the summer of 2018, Vimetco and a minority shareholder attempted to sell a 54% stake in Alro, but their attempt failed. editor@romania-insider.com (photo source: Alro.ro)