BSTDB EXTENDS USD 9 MILLION TO SUPPORT ENVIRONMENTALLY SAFE MANUFACTURING IN BULGARIA
Press Release | 11-Apr-2001
The Black Sea Trade and Development Bank will make available USD 9.171 million for financing specific elements of an ongoing environmental improvements programme at the Kombinat za Czvetni Metali S.A. (KCM), zinc-lead smelter in Plovdiv, Bulgaria. The maturity of the loan is 6 years.
The overall USD 75 million project is an essential programme for the company with a history of environmental problems. The KCM operations have been responsible for widespread contamination of the facility and the residential and agricultural areas around the facility. The implementation of the project will bring the facility into compliance with the Bulgarian and the EU environmental requirements, and prevent future environmental damage. Other benefits of the project will include upgrading the basic production units to international industry standards, increased levels of safety and potential production increases.
The BSTDB participation in the project will make it possible to complete the total financing plan of USD 75 million, with about USD 50 million to be provided by the Japan Bank for International Cooperation (JBIC) and Marubeni (Japan). Other international financial institutions and private banks have indicated their interest to follow BSTDB in contributing to the remaining portion of the financing plan.
KCM is a major zinc and lead producer with USD 60 million annual export (1.35% of Bulgarian annual export revenues). It has 2,400 staff, which makes KCM the biggest employer in the area. 80% of the company was privatized in 2000. Without the proposed environmental programme the company would run the danger of significant restriction or even termination of operations.
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 the authorized capital of the Bank is SDR 1 billion (approx. USD 1,35 billion), the Bank supports economic development and regional cooperation by providing financing for projects and trade transactions to public and private enterprises in its Member Countries. Since the commencement of its operations in 1999, the total amount of 19 credit facilities approved by the BSTDB Board of Directors exceeded USD140 million, with the total cost of projects with the Bank’s participation amounted to over USD 400 million. The project with KCM is the third operation of BSTDB in Bulgaria, after financing Florina Bulgaria S.A. juice producer together with IFC of World Bank, and extending a trade finance facility to First Investment Bank. Besides, BSTDB is a major shareholder in the Trans Balkan SME Equity Fund (managed by SEAF), which supports small business in Bulgaria.