TYRAS Group (Bulgaria, Romania)

In 2016, the BSTDB has arranged a long-term corporate loan of EUR 50 million to finance the investments and associated working capital needs of the dairy production plants of Fabrica de Lapte Brasov, Romania (FLB) and TYRBUL S.A., Bulgaria, both controlled by TYRAS Group, Greece.

The capital investments to be made will meet FLB’s and TYRBUL’s immediate needs to invest in new production lines, installations, machinery and equipment, in keeping with the growing demand for TYRAS Group’s products in Romania, Bulgaria and its export markets, mainly in the Western Europe. 

The BSTDB led the arranging of the financing package for the project, inviting the International Investment Bank (IIB) to co-finance with a EUR 22 million loan, whilst the BSTDB provided EUR 28 million from its own funds. This is the first project jointly financed by the BSTDB with the IIB.

The funding is expected to have a positive impact by generating additional export revenues, supporting the activities of a successful private group of companies active in Romania, Bulgaria and Greece and promoting the cooperation among the BSTDB Member States through investments and exports.

This is the third loan provided by the Bank to TYRAS Group to develop its operations in the Black Sea region. The cooperation started in 2012 with a first loan of EUR 30 million for the operations in Romania. A second loan amounting to EUR 10 million was extended in 2014 to finance capital investments at Fabrica de Lapte Brasov in Romania: installation of a milk receiving and pasteurization line, construction of a storage area for packaging materials, purchase of equipment for cooling milk and cleaning production lines, and improvements in the waste-treatment facility.

Total Project Cost: EUR 50 million
BSTDB financing: EUR 28 million
Maturity: 7 years
Type of financing: Corporate loan