EBRD considers possible credits to Polish companies

17:23, 26 June 2006
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For several projects in Ukraine

EBRD is examining the possibility to give EUR 40mn credit to Polish Barlinek Invest for building a wooden floor production plant in Vinnytsya region, according to IntellliNews. The credit can be syndicated with commercial banks. Polish BarlinekSA listed in Warsaw stock exchange owns 99% of Barlinek Invest.

At the end of 2005 Barlinek Invest announced that it intended to build a plant with annual production capacity equal to 2mn m² of wooden floors in Vinnytsya region.

The company planned to invest UAH 204.3mn (PZL 58.4mn) in the project. The company has already attracted PZL 58.4mn via IPO on Warsaw stock exchange. The rest it planned to borrow from financial institutions.

The plant will be built in 12-15 months. Barlinek is 5 the world largest wooden floor producer. Also EBRD can give EUR 46.8mn credit to Polish Cersanit Invest that plans to build ceramic tile production plant in Zhytomyr region. The bank will make the final decision regarding the project in Jul 25.

In mid 2005 the company unveiled its plans to build a plant in Vinnytsya region, but later changed its mind and decided to relocate the plant in Zhytomyr region due to cheaper cost of land. Cersanit has already agreed with Ukrainian-French  joint venture Osnova-Solcif on building the plant.

The fist stage of the project costs UAH 54.6mn. EBRD has already financed projects in the country worth EUR 2.27bn as of May 1, 2006 .

The news was monitored by The Action Ukraine Report (AUR) Monitoring Service, Morgan Williams, Editor.

 

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