November 17 (SeeNews) - ING Bank Romania, part of Dutch ING Group, said on Friday that it is providing 21.4 million euro ($23.3 million) in credit facilities to local corrugated board, hygienic-sanitary paper and cardboard packaging producer Vrancart [BSE:VNC].
The financing, which consists of working capital facilities and investment loans, is aimed at strengthening Vrancart’s market position, boosting investment in the acquisition of high-tech equipment, as well as developing recycling, production, and logistics capabilities, ING Bank Romania said in a press release.
“ING's new funding targets all three divisions of the company, namely Waste Management, Paper and Packaging. The investment process is expected to take place in the next two years, so Vrancart will consolidate its position as a champion of circular economy in Romania,” Vrancart CFO Dragos Holban said.
Since 2014, the lender has played a key role in Vrancart's development by financing and refinancing a variety of investment projects, according to Alexandrina Baluta, Medium-Sized Company Strategy Manager at ING Bank Romania.
As a hygienic-sanitary paper producer in Romania, Vrancart recycles more than 40% of the total amount of scrap collected nationally, which entails recycling about 300 tonnes of paper and cardboard daily.
Following the inauguration of its first 1 MW photovoltaic (PV) park in August, Vrancart is also aiming to finalise a 20 MW PV park and a high-efficiency cogeneration station, which together will provide more than 50% of the company’s consumption needs. The group is also developing recycling facilities for plastic, wood waste, as well as paper and associated residues that will transform into raw materials or finished products.
In the first half of 2023, Vrancart booked a net profit of 10 million lei ($2.2 million/2 million euro) on a total revenue of 285 million lei. Vrancart has been listed on the Bucharest Stock Exchange since 2005.
Vrancart shares traded 1.26% higher at 0.161 lei ast at 1416 CET on Friday on the Bucharest bourse.