EBRD Makes 6 Mio EUR Equity Investment In Alba-Based Paper Factory

• The bank will appoint a Member of the Pehart Tec Board

Stefania Ciocirlan

The European Bank for Reconstruction and Development (EBRD) injected 6 million EUR into the share capital of paper factory Pehart Tec, thus making a turn in their previous policy on Romania. Pehart Tec is a member of MG Tec Group, managed by Ioan Tecar.

"Talks between the bank and company representatives took several months, giving us the opportunity to review the company"s business plan, profitability and the way in which the money was going to be used," EBRD Director for Romania Claudia Pendred said on Friday. She added that EBRD had had similar talks with several Romanian companies, but some of them ended without any agreement. "Either the shareholders did not want to have an outside partner or we concluded that the respective company was not so profitable," she added.

The EBRD representatives emphasized that the bank"s involvement in Pehart Tec"s development would not be limited to finances. "We are going to appoint an EBRD representatives on the Board of Directors of the company, hoping that our expertise will prove as useful," EBRD representatives said.

The EBRD funds will finance energy efficiency plans as Pehart Tec intends to save up to 1.5 million EUR per year by cutting energy costs, Pehart Tec representatives announced. The 6 million EUR provided by the EBRD will add to the 26 million EUR that Pehart Tec is planning to invest in upgrading the plant in Petresti. Approximately 20% of the sum comes from the company"s own funds, while the rest has been borrowed from BCR, MG Tec Group President Ioan Tecar stated yesterday. The new investment is expected to boost the company"s turnover from 1.8 million EUR per month to approximately 4.5 million EUR per month, Tecar said.

• Claudia Pendred: We will sign a fairly large contract with a Romanian energy company

The European Bank for Reconstruction and Development is planning to sign a significant financing contract with a Romanian energy company, Claudia Pendred said on Friday. She said that EBRD was carefully considering media, agricultural and industrial companies, having profitability as one of the leading decision criteria in matters of financing.

The EBRD has already disbursed two loans to Petrom this year, thus delivering on their statements that they are paying distinct attention to the Romanian energy sector.