Alro to extend its revolving credit facility
Alro – the largest aluminium producer in Continental Europe (excluding Russia and Scandinavia), having an installed production capacity of 265,000 tonnes per year – has recently signed a three-year USD 167mln credit facility. The company is part of the 7th largest aluminium producer worldwide, Vimetco NV, a global, vertically-integrated primary and processed aluminium producer, which has operations in Romania, China and Sierra Leone.
The deal extends with three years its existing USD 137mln revolving credit facility from December 2015 and adds a new USD 30mln letter of credit line. This revolving facility aims funding the working capital needs of the company, while the additional non-cash facility is intended to be used for issuing LCs and LGs to support both the operating and investing activities. The commercial terms have been enhanced in several directions with a positive impact in the financial costs of the company, as well.
The transaction and the club of eight banks have been led by RBI Group (Raiffeisen Bank International and Raiffeisen Bank Romania acting jointly) as the sole Coordinator.
The club consists further of OTP Bank Romania, Unicredit Bank, Banca Comercială Intesa Sanpaolo Romania, Banca Transilvania, Banca de Export-Import a României (Eximbank) and Garanti Bank.
The main markets for the products manufactured by Alro are within the EU (Germany, Hungary, Poland, Greece and Romania). Alro also exports to the USA and Asia. Alro is ISO 9001 certified for quality management and has NADCAP as well as EN 9100 certificates for aerospace production organizations. Alro’s products adhere to the quality standards for primary aluminium on the LME, as well as international standards for flat rolled products.
Alro is one of Romania’s largest companies with an important contribution to the local and national economic development. Alro’s shares are traded on the Bucharest Stock Exchange.
Alro’s primary aluminium facilities are located in Slatina and currently comprise a smelter and processing facilities, including a cast house, hot and cold rolling mills and an extrusion shop. The company is also owner of Alum S.A. an alumina refinery based in Tulcea.
Alro’s customers consist of end users and metal traders both within Romania and beyond. More than 80% of Alro’s output is sold on the international market through the London Metal Exchange, and based on direct contracts with long-term customers in 25 countries of the world. In fact, Alro products are sold directly throughout the European Union, in Italy, Greece, Austria and Hungary, as well as in Turkey, in the Balkan countries and in the United States.