Alro, one of the biggest aluminium producers in Central and Eastern Europe, has signed on Tuesday an agreement to borrow USD 60 M from the Black Sea Trade and Development Bank (BSTDB), a communiqué released by the bank informs.
The loan will allow Alro to finance its investment plan this year, a plan that focuses on raising the efficiency of its operations, lowering its energy dependence and improving its competitiveness.
“BSTDB continues to support its member states in the current low-growth global context. In line with the bank’s strategy to hike its portfolio in Romania, we are pleased to help Alro implement its ambitious investment plan at a difficult time. Moreover, our loan will contribute to Alro’s expansion and will help the company create new jobs in Romaina,” BSTDB President Ihsan Ugur Delikanli stated.
“The loan we obtained from BSTDB will support our plan to continue to invest in modern technology, in boosting production capacity and the quality of our products. During turbulent market periods, it is important for international financial institutions such as BSTDB and others to intervene as an extra factor of stabilization,” Alro Chairman of the Board Marian Nastase stated.
The loan contracted by Alro has seven-year maturity, and the company has used several fixed assets and mortgages as collateral. Zamfirescu, Racoti & Partners law firm was the company’s legal advisor.
Romania is a founding member of BSTDB, alongside the rest of the member states of the Black Sea Economic Cooperation (BSEC) – Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Russian Federation, Turkey and Ukraine.
The agreement to establish the bank was signed on 30 December 1994 and was subsequently ratified by Parliament through law no.67/1996. Romania currently owns 280,000 shares worth EUR 322 M, namely 14 per cent of BSTDB’s subscribed and paid capital and 9.34 per cent of its authorized capital.