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February 1, 2023

BCR coordinated a EUR 78.5 million syndicated loan for Pehart Group

Pehart Group, one of the largest tissue paper producers in Southeast Europe and the largest producer and processor of household paper products in Romania, signed a EUR 78.5 million syndicated loan, following the amendment and increase by EUR 27.8 million the existing facilities.

The credit will be used to support the company’s development plan, which includes investments in energy-efficient equipment, green energy solutions, development of new production capacities and working capital expansion.

The credit line obtained in 2020, together with this new extension, are coordinated by Banca Comercială Română, as Mandated Lead Arranger, Bookrunner, Documentation Agent, Facility and Security Agent. The new credit facility maintains the structure of the same syndicate of banks, which includes ING BANK N.V. Amsterdam, Bucharest Branch, Raiffeisen Bank SA and OTP Bank Romania as Mandated Lead Arrangers, while for the current exposure increase the lenders are BCR, ING and Raiffeisen.

In the syndicated loan for Pehart Group, BCR is participating with EUR 31.7 million, representing 41% of the total financing, an increase of EUR 13.7 million over the existing facility.

Țuca, Zbârcea & Asociații acted as a legal advisor on behalf of the lenders, in the negotiation and implementation of the financing facility documentation.

Schoenherr acted as legal advisor for Pehart Group.

The loan will be used for multiple purposes, to finance Pehart Group’s new investments projects, including production capacity increase, product portfolio diversification, and sustainable development support through green energy investments and business technology upgrades.

The green economy transition is a journey we are taking together, helping our customers and communities, and supporting clean operations projects. As always we look at what long-term impact means, taking into consideration environment care, resource efficiency and making local businesses more competitive. Pehart Group is one of the companies with a sustainable development plan, actively seeking to strengthen its position in relation to European market players and has understood the role of technology investments across the entire production flow,” said Eleonora Bacale, Head of General Industries and TMT, BCR Strategic Clients Division.

“A solid business plan, attached to a syndicated loan, ensures product quality growth, portfolio development and sustained relevance in the international value chain, but more than that, it increases local entrepreneurs confidence and proves that every local business can thrive in the global economy. We support Pehart Group, one of the most important players in the paper industry in Central and Eastern Europe, in all their plans to invest in energy efficiency and modern production lines. We encourage their international expansion strategy and their aim to strengthen their role in the regional market,” said Grația Popescu, Senior Banker Loan Syndication BCR.

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