It is reported that the EBRD has extended a loan of PLN 150 million to Celsa Huta Ostrowiec, a Poland based steel mill owned by the Spanish Celsa Group.

This new loan was arranged in addition to a loan refinancing by Polish and international banks, including the EBRD, totaling EUR 550 million.

The EBRD is the sole provider of new short term financing which is essential for the company's growth and financial stability. The loan is being made in zloty which will reduce the company's foreign exchange risk.

Celsa Huta Ostrowiec has been well known to the EBRD since 2004, when the Bank financed the acquisition of the bankrupt Polish mini mill by the Celsa Group, a major Spanish steel producer. Following the restart of operations, the mill was successfully turned around with further EBRD financial support to rapidly become a leader in the Polish reinforcing bar market, and a top player in highly specialized forged products and, later on, merchant bars.

The company suffered in the crisis of 2008-09, but is expecting to demonstrate good growth figures in 2011, on the back of the Polish construction market recovery.

(Sourced from www.finchannel.com)