January 9 (SeeNews) - Bulgarian power tools manufacturer Sparky Eltos [BUL:SL9] has signed a 7.5 million euro ($7.9 million) loan deal with the country's state-owned development bank BDB, the company said.
The company plans to use the proceeds of the loan to finance working capital needs, Sparky Eltos said in a bourse filing on Friday.
The interest rate on the loan is set at three-month EURIBOR plus 3 percentage points per annum but no less than a total of 5%. The loan will mature on December 31, 2017.
In November 2015, Sparky Eltos launched a new production line at its plant in Lovech, in north-central Bulgaria. The project was backed by the Bulgarian Development Bank (BDB) alongside the International Investment Bank with a 10 million euro syndicated loan, with the BDB contributing 3 million euro.
The company's long term debts to banks and non-banking institutions totalled 47 million levs as of end-September 2016, compared to 41.1 million levs a year earlier, according to its financial statements for the first nine months of 2016.
Sparky Eltos' consolidated net loss almost doubled to 11.72 million levs in the first nine months from 6.78 million levs in the same period of 2015.
BDB is focused on supporting small and medium-sized enterprises.
Sparky Eltos shares closed 11.17% lower at 0.350 levs on Friday on the Bulgarian Stock Exchange as 16,600 units changed hands.
($= 0.9478 euro)