BSTDB supports modernization of the Albanian steel and power sectors
Press Release | 19-Dec-2013
The Black Sea Trade and Development Bank (BSTDB) will provide a EUR 18 million loan to Kürüm International Sh. A. This eight-year loan will finance the acquisition and rehabilitation of four existing hydroelectrical power plants (HEPPs) previously owned and operated by the Albanian state.
The total cost of the operation is EUR 132,5 million. The debt portion will be co-financed through parallel loans by BSTDB, the International Finance Corporation (IFC), Banka Kombetare Tregtare and Raiffeisen Bank Albania. The financing also includes B Loans from FMO (Netherlands Development Finance Company), IFC, and from Odeabank (the Turkish subsidiary of Bank Audi- Lebanon).
The financing will enable Kürüm materialize substantial reduction in energy costs. More reliable energy supply will be secured by consuming electricity generated by its own HEPPs.
“BSTDB recognizes the positive externalities created by this third loan to Kurum. The loan promotes sustainable growth in Albania and helps strengthen investment links between Countries in the Region. The agreement testimony that international financial institutions and commercial banks foster development and employment”, said Mustafa Boran, Vice President Banking.
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Controlled by the Turkish Kürüm Family since the mid-1970s, Kürüm Group has been operating in the iron and steel industry with the vision to expand its operations to other related businesses in Türkiye and the Balkans. Kürüm Holding has established various companies and currently employs more than 1,100 people in Türkiye and the Balkans. Based in Albania, Kürüm International, located in Elbasan, is an integrated steel and iron company that operates a mill with 510,000 tpa of billet production capacity. Kurum International enjoys the exclusivity of being the first and only operator of an integrated single iron and steel production plant in the country.
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 are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. BSTDB is rated long-term “A-” by Standard and Poor’s and “A3” by Moody’s. For information on BSTDB, visit www.bstdb.org.
Press contact:
Haroula Christodoulou
Phone: +30 2310 290533
E-mail: cchristodoulou@bstdb.org