BUCHAREST (Romania), June 23 (SeeNews) - The Black Sea Trade and Development Bank (BSTDB) said on Wednesday that it is providing a $40 million (33.7 million euro) loan to Romanian aluminium producer Alro [BSE:ALR], part of Vimetco Group, for its capital investment programme.
The seven-year loan will be used primarily for improving the company’s energy management performance, as well as high value-added production capacity, BSTDB said in a press release.
The project’s total cost amounts to around $95 million will also financed by Romanian and international commercial banks.
"Given the positive outlook for the economy, we believe the company will be able to meet increased domestic demand and bring substantial development impact to the Romanian economy including job creation, export promotion and increased revenues for the state budget," BSTDB president Dmitry Pankin said.
Since 2015, the BSTDB has provided a total of $120 million in support of Alro’s development.
"ALRO is one of the leading companies in Romania having as specific objective to meet climatic neutrality targets by implementing state-of-the-art technologies. We run a responsible business and the significant investments made in projects aiming to protect the environment by reducing emissions, improving energy efficiency and optimise the use of resources are proofs of our progress in this direction," Alro chairman Marian Nastase said.
Alro, founded in 1961 is a subsidiary of Netherlands-registered global primary and processed aluminium producer Vimetco N.V.
Alro is one of the largest vertically integrated aluminium producers in Europe, having an installed annual production capacity of 265,000 tonnes of electrolytic aluminium, 35,000 tonnes of recycled aluminium and 335,000 tonnes of cast aluminium. The company exports its products to more than 50 countries worldwide.
Alro's shares were trading 2.63% higher at 2.73 lei ($0.66/0.55 euro) on Wednesday at 0900 CET on the Bucharest Stock Exchange.
The Black Sea Trade and Development Bank is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece.
Alro SA is among the biggest companies in SEE, for more reference take a look at Top 100 companies