EximBank leads a syndicated loan of 150 Million USD for ALRO Slatina

Bucharest, November 23, 2020 – EximBank has coordinated a syndicated transaction that ensures the extension of the working capital facilities amounting at 150 Million USD granted to  ALRO Slatina, the sole local manufacturer of aluminum and aluminum alloys and one of the largest vertically integrated manufacturers of aluminum in Europe, based on the manufacturing capacity.

The new financing agreement concluded last week provisions the extension of the loan facilities validity granted in 2015 up to 2023 thus enabling maintaining the operational stability of the Romanian aluminum manufacturer.

The syndicated loan was arranged by a group of 10 financial institutions – Unicredit Bank, OTP Bank Romania, ING Bank, Raiffeisen Bank, CEC Bank, Intesa Sanpaolo Romania, Banca Transilvania, Garanti Bank, International Bank for Economic Cooperation and EximBank – that coordinated for the first time this transaction. The legal services have been provided by Allen & Overy and Radu Taracila Padurari Retevoescu SCA, for the banking syndicate and by Simmons & Simmons and Zamfirescu Racoti Vasile & Partners, for ALRO.

”In order to face the new economic challenges, ALRO has opted for a different strategic approach aiming at reducing its vulnerability and increase its opportunities. We have implemented fast a plan to mitigate the crisis by reducing costs, a plan that has started before the radical changes that we can now witness all around the world, aiming at optimizing our operations and ensure the business continuity in highest safety conditions. The effects have been rapidly noticed: we had solid financial results and maintained our competitive position on EU market. This led to a favorable position in terms of financing with our lenders that are supporting the business continuity at Group level. In terms of future plans, we will continue to focus on current and future investments in order to face the next potential challenges ahead, main action lines being increasing the manufacturing mix and extending the portfolio with products with high added values, continuing the investment for increasing energy efficiency and integrating the innovative technologies for supporting a sustainable business model and reaching the climate neutral targets”, said Marian Năstase, President of the Management Board  of ALRO.

ALRO is a subsidiary of Vimetco N.V., (the Netherlands), a global, vertically integrated primary and processed aluminum producer. ALRO is one of the largest vertically integrated aluminum producers, by capacity, in Europe, having an installed production capacity of 265,000 tons per annum of electrolytic aluminum, 35,000 tons per annum of recycled aluminum and 325,000 tons per annum primary cast aluminum.

The main markets for ALRO products are European Union countries, but the company also exports in USA and Asia. The plant is ISO 9001 certified for quality management and holds NADCAP and EN 9100 certificates for the production facilities for aerospace industry, its products being compliant with the quality standards for primary aluminum established by London Metal Exchange – LME as well as the international standards for flat-rolled laminated products.

As of March 18, 2019, the Index Committee of Bucharest Stock Exchange has approved ALRO (ALR) inclusion in BET, the main market index and in BET-TR (total return market index). ALRO shares are listed at Bucharest Stock Exchange since October 1997, ALRO being the first company in the aluminum industry included in both indexes.

Also, since 16th of November 2020, ALRO is a member of the international association ASI (Aluminum Stewardship Initiative), that aims at improving the aluminum industry sustainability.