EBRD offers Alro USD 180 million syndicated refinancing package

The European Bank for Reconstruction and Development (EBRD) has offered a USD 180 million syndicated refinancing package to aluminium producer Alro. 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 per cent. Listed on the Bucharest Stock Exchange, Alro employs over 3,300 people. It is majority owned by Vimetco NV, a vertically integrated producer of primary and processed aluminium products. The EBRD will retain USD 75 million on its account, with USD 105 million to be syndicated to commercial banks. “Through this project, the EBRD is supporting one of Romania’s leading private sector companies, helping it to produce higher value added products and improve its energy efficiency” said Claudia Pendred, EBRD Director for Romania. “The EBRD facility offers Alro a good basis for continuing its development strategy by further consolidating its financing structure”, said Marian Nastase, Vice-President of the Board at Alro (in picture). Since the beginning of its operations in Romania, the EBRD has committed EUR 4.7 billion across more than 270 projects, which attracted additional investment of EUR 8.3 billion. Alro registered a net profit of RON 50.5 million (USD 16.9 million), in Q1 2010, compared to USD 8.3 million registered in Q1 of 2009. The company’s turnover for Q1 2010 was RON 414 million (USD 139 million), compared to USD 118.7 million turnover in Q1 of last year.