"Alro" Slatina negociating a loan of USD 180 million loan with the EBRD

"Alro" Slatina is negotiating a loan with the European Bank for Reconstruction and Development a loan to refinance its debt. The loan may not exceed USD 180 million, with USD 105 million to come from a syndicated loan taken from several commercial banks, according to a press release by the Vimetco group, the majority shareholder of the Romanian aluminum maker.

At the end of Q1 2010, the outstanding debt of Alro had reached 683.71 million lei. The conclusion of this agreement will allow "Alro" to continue with its investment programs and long term development which would allow the company to focus its operations on higher added value aluminum products.

"Alro" Slatina has planned investments amounting to USD 50 million for the 2010 - 2012 period. The implementation of this program would allow the company to expand its product range and to increase its energy efficiency. In the beginning of the year, the company announced an investment program of USD 15 million for 2010.

"The EBRD has conducted a thorough due diligence and the project will be put forward for consideration by the Bank"s Board of Directors on 8 June 2010", the press release states.

"Alro" Slatina had a turnover of 414.1 million lei at the end of Q1 2010, up 6.4% YOY, and a net profit of 50.5 million lei, up 84.9%. The company expects to make a profit of USD 56.7 million this year, for a turnover of USD 579 million.

"Vimetco", a company registered in Holland and controlled by Russian businessman Vitali Machitski, holds 84.18% of Alro, with the remaining shares being freely floated among shareholders.