BSTDB supports modernization of a steel major in Bulgaria

News | 23-Feb-2007

Thessaloniki, 23 February 2007

BSTDB SUPPORTS MODERNIZATION OF A STEEL MAJOR IN BULGARIA

BSTDB made available EUR 18 million to Kremikovtzi AD, the largest steel producer in Bulgaria, for the implementation of the company’s post privatization capital investment program with a total cost of over EUR 400 million.

The BSTDB loan with maturity of 7 years will enable Kremikovtzi to upgrade and revamp its manufacturing facilities so as to increase the production of higher value added products.

“As a development bank, BSTDB is happy to contribute to the modernization of the Bulgarian industry leader and major employer and to support its plans to become a competitive modern manufacturer with strong regional and international presence” said Mikhail Jernov, Vice President Banking, signing the project.

“This loan from BSTDB would help Kremikovtzi AD to achieve its plan of making the products of international standards..” Said Mr. Vilas Jamnis, CEO.

Including the Kremikovtzi project, BSTDB’s approved operations in Bulgaria total over USD 115 million. They support manufacturing and energy sectors, as well as SME development and foreign trade.

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Kremikovtzi AD was privatized in 1999 and now is majority owned by Global Steel Holding Ltd. (71%) and the Bulgarian Government (25%). The Company is manufacturing and selling a variety of flat products, coke and ferroalloys to clients in Bulgaria, the EU and the Balkan region. Employing more than 7.000 people, Kremikovtzi AD generates around 2% of the Bulgarian GDP and over 10% of Bulgarian exports to the European Union.

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. With an authorized capital of SDR 1 billion (approx. USD 1,45 billion), the Bank supports economic development and regional cooperation by providing financing, guarantees, and equity for projects in the public and private sectors in its member countries. BSTDB is rated Long Term Baa1 and Short Term P2 by Moody’s.