The European Bank for Reconstruction and Development (EBRD) has decided to invest €10 million in the authorized capital of the Ukrainian seamless stainless steel tube producer Centravis Production Ukraine (Centravis), 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 €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's ecological standards, as well as an increase in corporate management standards. The total value of the project amounts to €76 million.
According to Natalia Mikolaenko, Centravis' PR specialist, 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 percent stake in the company. It is expected that of the €48 million loan, which is planned to be secured for a period of five years, €33 million will be syndicated with Erste Bank and HVB-Unicredit Group.