EximBank has granted to the company Solarex of Satu Mare a financing package exceeding EUR 6 M to enable the accomplishment of a large investment project relying on a funds received within the Regional Operational Program 2007 – 2013 (REGIO), Top priority pier – Consistent Development and Travel Promotion.
The project is meant to support the building of a travel and health care services compound located in the city of Satu Mare, using the geo-thermal water available in this area.
“Most convincing for us in making the decision to finance such project, was among others, the further effects on local and national economy of the respective investment, namely the increase of travel activity in the area known for its beneficial water sources, and the appearance of new job opportunities. Moreover, we intend to be more determined about supporting commercial companies involved in EU funded projects, the partnership with Solarex setting an example of our part, likely to inspire more entrepreneurs to approach the EximBank offer in the domain,” declared Ionut Costea, president of EximBank.
To unfold such an investment, the company in Satu Mare concluded a financing agreement for an amount of about EUR 8.5 M with the Ministry of Regional Development and Travel through the Agency for North-West Regional Development, with roughly EUR 5.5 M of the amount accounting for grants.
“We have started working last summer and according to estimates it should be finished by the end of the year. However, the mild weather enabled us to work even in winter time, so that we may inaugurate the compound earlier,” said Nagy Erzsebet, manager of Solarex.
EximBank offers to companies and public authorities projects relying on structural funds a mix of products including co-financing and pre-financing loans as well as comfort and non-committal letters or guarantees.
Therefore, according to the type of project relying on structural funds, EximBank may extend investment loans meant to co-finance the constituent accounting for company’s own contribution. Through such product a company having entered into a financing agreement with the management authority is entitled to 100% of the value of eligible and non-eligible expenses incurred by company’s contribution.
Likewise the bank may pre-finance the loans required by companies to bridge the gap between the time of payments to project related suppliers and the time of collection from the management authority, covering for 100% of the EU funds granted.
The package is completed with comfort letters, through such an instrument the bank expresses its willingness to place at company’s disposal the funds for project implementation, provided the management authority has agreed to the project. EximBank can also guarantee those credits engaged by companies with the commercial banks to turn to good account the projects relying on structural funds.