It is reported that the European Bank for Reconstruction and Development has decided to invest EUR 10 million in the authorized capital of the Ukrainian seamless stainless steel tube producer Centravis Production Ukraine a part of Centravis International Holding set up on the premises of Nikopol South Pipe Plant and also to offer the company syndicated credit of EUR 48 million.

The financing in question targets the improvement of Centravis balance sheet by way of increasing its authorized capital and via the establishment of an adequate ratio between the short term and long term debts of the company. It also targets a further improvement of the company ecological standards, as well as an increase in corporate management standards. The total value of the project amounts to EUR 76 million.

Mr Natalia Mikolaenko Centravis' PR specialist said the details of the cooperation with the EBRD will be disclosed following the signing of the credit agreement. Experts consider that as a result of the investments the EBRD will receive a 12% stake in the company. It is expected that of the EUR 48 million loans which is planned to be secured for a period of five years, EUR 33 million will be syndicated with Erste Bank and HVB-Unicredit Group.

(Sourced from SteelOrbis)
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