Scandia Taps 32.5 Mio EUR Loan

C.C.

Scandia Romana, one of the leading players on the Romanian market for canned meat, has taken a 32.5 million EUR loan to finalize a new factory. Scandia is thus one of the few Romanian companies that manage to take a significant loan despite general economic difficulties and also to develop an innovative financing scheme on the Romanian market, a press release indicates.

The loan is granted jointly by RBS Romania (formerly ABN AmRo) and Banca Comerciala Romana (BCR) and coordinated by RBS Romania. Technically speaking, it is a club loan as defined by the Loan Markets Association (LMA). The maximum value is 32.5 million EUR, comprised of a short-tem tranche and a long-term tranche. "We have agreed with the banks to follow a 10-year repayment plan under which half of the borrowed sum will be repaid by the end of the fifth year," said Luis Morais, CFO of Scandia Romana.

"Scandia and the financing banks have restructured al de debts of the companies in Scandia Group and consolidated both ongoing loans and the need for additional financing into one transaction. The financing comprises three credit line that will sustain construction costs, equipment costs, production costs and operating capital requirements," said Robert Redeleanu, CEO of Scandia Romana.

The new Scandia factory is a greenfield project on a budget of 50 million EUR. Most of the funds will be invested in the actual building and its technical specifications. Using SAPARD funding, Scandia started to gradually procure the necessary equipment several years ago. As the equipment is almost new, it will continue to be used in the new factory. The overall cost of the equipment and production lines has been estimated at 10 million EUR.

The building is located outside Sibiu, 300 metres to a highway under construction. The two-floor factory will have a production line for canned meat and one for charcuterie. The usable surface will be 16,000 square metres, including modern storage facilities for both raw materials and finished products.