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EBRD Showcases Project Investments to Commemorate Croatia’s EU membership on 1 July 2013

PROGRAM / PROJECT NEWS 

7 July 2013 – London, UK – In honor of Croatia’s entrée into the European Union on 1 July, the European Bank for Reconstruction and Development (EBRD) has issued a number of articles and news releases in support of the country and describing various projects there that have benefited from bank involvement.   The total number of projects in Croatia that the EBRD has invested in to date is 152 with a net business volume of €2.77 billion and total value of €7.4 billion.

ebrd-showcases

This year the bank expects to invest €230 million in Croatia (compared to €210 million in 2012) and is focussing on SMEs, supporting the absorption of EU Structural Funds and the development of infrastructure and municipalities.

Below are some notable EBRD projects in Croatia and the impact they have had.

  1. Piramida is the leading producer of ampoules and vials for the pharma industry. EBRD provided a loan of €3.6m signed in April 2013 for balance sheet restructuring and new capital expenditure for capacity increase. The company’s sales were € 8.8m in 2012 and expected to reach €10.2m in 2013, with approximately 90% sales from exports. Piramida holds key pharmaceutical certifications for glass packaging (including ISO 15378:2006), runs on SAP and remains frequently audited by customers.
  2. Pelet Grupa is a private company set up to construct a cogeneration biomass power plant in Novska, with a production capacity of 1MW of electricity and 4MW of heat and wood pellet production. This is a greenfield investment, of a kind currently rare in Croatia. The power plant will be fuelled by forestry biomass and wood industry waste. The total project costs of both the power plant and pellet production amount to €8.9m out of which €3.7m was provided by the EBRD – under the WeBSEDFF, which will be used for financing of equipment for the power plant.
  3. In May 2009 the Bank signed an agreement to provide a €70 million senior corporate loan to Plinacro, a 100 % state-owned Croatian gas transmission operator. Plinacro manages the gas transportation network from the border of Croatia to the local gas distributors and big industrial end consumers. It owns and operates almost 2,600 km of regional and trunk pipelines and transports approximately 3.4 billion cubic meters of natural gas per annum.  Gas storage capacity is of strategic importance for the Republic of Croatia and is essential for achieving gas supply stability, especially during periods of peak consumption in winter.
  4. ABS Sisak d.o.o. is a limited liability company established in Croatia, 99% owned by Danieli & C. Officine Meccanice SPA and 1% by Acciaierie Bertoli Safau S.p.A, Danieli steel-making division.The EBRD made a €20 million senior loan to the company. This will finance the refurbishment of the existing production facilities and implementation of the new equipment to develop and restructure the plant into an engineering steel-making facility with a capacity of up to 400k tons of steel per annum. ABS Sisak will produce high quality billets and blooms with a length of up to 12m and diameter of up to 400mm.  The total project value is €60 million.
  5. Atlantic Grupa is one of the biggest regional food producers in South Eastern Europe. EBRD’s cooperation with it started in 2010 with the acquisition of Droga Kolinska, one of the leading regional food and beverage producers in ex-Yugoslavia. EBRD supported the acquisition through provision of an equity investment via a capital increase on the Zagreb Stock Exchange and a mezzanine loan.  In 2012, the EBRD arranged a €307m financing package for Atlantic Grupa. The package – the biggest syndicated deal in the regional corporate sector in 2012 –supported a strong regional corporation at times when the region was still recovering from crisis. The financing is enabling the Group to introduce energy management systems, sustainability certifications and strengthen its balance sheet through replacement of existing acquisition debt and working capital financing.
  6. A member of Intesa Sanpaolo Group, Privredna Banka Zagreb is the second largest bank in Croatia, providing a diverse range of banking services to corporate and retail customers through its extensive branch network. EBRD has supported the bank repeatedly, most recently with a €20m SME credit line under the Private Sector Support Facility in 2011.
  7. EBRD has supported Agrokor, a leading agribusiness company in Croatia and South Eastern Europe, for many years and remains committed to strengthen its further development. Agrokor is active in the production, distribution and retail of food and drinks and today is the largest private company in Croatia.

For more information about EBRD projects in Croatia, go to http://www.ebrd.com/pages/country/croatia.shtml

The European Bank for Reconstruction and Development (EBRD), established in 1991 to nurture the private sector in central and eastern Europe and throughout Central Asia, uses investment to help build market economies and democracies. The EBRD is the largest single investor in the region and mobilizes significant foreign direct investment beyond its own financing. Owned by 61 countries and two intergovernmental institutions, the EBRD provides project financing for banks, industries and businesses.  The EBRD invested €8.7 billion in 388 individual projects in 2012.  For more information about the bank, visit http://www.ebrd.com/index.htm

Source: EBRD