SOFIA (Bulgaria), December 29 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said it will provide a new loan of 20 million euro ($22.6 million) to Bulgarian copper products manufacturer Sofia Med to help meet capital expenditure needs in the context of its sustainable growth.
The funds will allow Sofia Med to expand production of copper and copper alloy strips, mainly in response to the increasing demand for copper in green applications ranging from e-mobility to renewable energy, the EBRD said in a statement earlier this week.
The EBRD-funded investments include two annealing furnaces, new cold rolling unit, as well as other investments increasing the throughput of final stages of production. As part of the engagement, the EBRD will also support Sofia Med in developing and implementing a low-carbon pathway to align operations to the goals of the Paris Agreement on climate change.
Earlier this year, EBRD said it will provide a loan of up to 20 million euro to support Sofia Med's investment programme. The senior secured loan will have a tenor of up to seven years.
The proceeds of the loan will be used to finance Sofia Med's 2020-2022 capital expenditure programme, worth a total of 27 million euro, which entails capacity increase for manufacturing of copper and copper alloy strips, to be used for e-mobility and renewable energy applications, the EBRD also said at the time.
Sofia Med, which exports 95% of its output, is a producer of a wide range of rolled and extruded copper and copper alloy products such as sheets, strips, plates, circles, disks, bare and plated copper bus bars, rods, profiles, components, and wire that are used in a wide variety of building and industrial applications. The company is situated in the capital city Sofia, on a 250,000 sq m area and has three production units - foundry, rolling and extrusion mills, according to information published on the company's website.
Sofia Med is a subsidiary of Greek-based aluminium and copper processing company ElvalHalcor, which is part of Viohalco, a Belgium-based holding company that consolidates leading metal processing companies across Europe.
($ = 0.88604 euro)