EBRD backs Draexlmaier's SEE investment with 75 mln euro

The senior unsecured loan will support the expansion of Draexlmaier's production capacity in Romania for high-voltage harnesses and battery systems for electric vehicles and broaden access to market-relevant skills, the EBRD said in a project summary description on Wednesday.

Draexlmeier will introduce new training programmes on emerging technical skills and apprenticeship programmes in collaboration with local universities to support workforce readiness and inclusivity in the region, as per the statement.

In October 2021, EBRD invested 25 million euro in a 350 million euro ESG-linked Schuldschein bond issuance by German automotive company Fritz Draexlmaier to back investments in Romania, Moldova and North Macedonia. The lender's previous financing was also aimed at supporting e-mobility investments in the three Southeast European countries.

The German group entered Romania in 1993 and currently employs some 15,000 people in manufacturing units in Brasov, Hunedoara, Pitesti, Satu Mare and Timisoara. In 2021, Draexlmaier earmarked 200 million euro for the construction of an electric vehicle battery plant in Timisoara, with investments spread over six years, mayor Dominic Fritz said in a social media post at the time.

Elsewhere in SEE, Draexlmaier operates manufacturing plants in Moldova, North Macedonia, and Serbia.

($=0.9369 euro)