BUCHAREST (Romania), June 22 (SeeNews) - Romanian state-owned savings bank CEC said on Wednesday it is lending 5 million euro ($5.3 million) to local cooling systems and heat exchangers manufacturer RAAL.
The loan has a state guarantee issued by EximBank under the Covid-19 state aid scheme for companies, which covers 90% of the funding, CEC Bank said in a press release.
RAAL will use the loan to finance current activities in its two production facilities in Bistrita county.
"Heat exchangers are used in heating and cooling solutions for electric vehicles batteries, agricultural machines, industrial equipment for compressed air, trains, construction machinery and much more. It is an area with great potential in the current context of relocating industrial activities as close as possible to end users, amid global concerns over carbon footprint," CEC Bank general manager Bogdan Neacsu said.
Founded in 1978, RAAL is a manufacturer of complete cooling systems and heat exchangers made of aluminum alloys and stainless steel. RAAL has its own research and development team, and over 99% of the production is destined for export. Among the group's customers are John Deere - one of the most well-known manufacturers of agricultural machinery, Class and Samsung.
RAAL swung to a 13 million lei ($2.76 million/ 2.63 million) net profit in 2021, from a 39.3 million lei net loss in 2020, as its turnover rose by an annual 25% to 323 million lei, data posted on the finance ministry's website showed. The group employed 2,054 at the end of last year.
(1 euro=4.9469 lei)
CEC Bank SA is among the biggest banks in SEE, for more reference take a look at Top 100 banks