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New EBRD funding for Slovene nylon production company
A second financing package of DM 20 million (ECU 10.3 million) from the European Bank for Reconstruction and Development (EBRD) to the Yulon nylon production company in Slovenia will enable it to expand its production capacity and strengthen its international competitiveness. The EBRD is making a DM 10 million (ECU 5.2 million) equity investment and is also extending an existing DM 32 million (ECU 17 million) loan, made in November 1995, by another DM 10 million (ECU 5.2 million). Of the total loan amount of DM 42 million, DM 18 million (ECU 9.2) has been syndicated to two Austrian commercial banks - Creditanstalt-Bankverein and Bank Austria.
Olivier Descamps, Director of the EBRD's Slovenia team, said: "This fresh EBRD funding will enable Yulon to restructure its nylon textile operations and to increase production. The Bank's equity investment will be instrumental in catalysing commercial long-term funding for this promising private sector company with a strong export market."
Edgar Rosenmayr, Head of International Project and Acquisition Finance at Creditanstalt-Bankverein, said: "This financing will support an ongoing investment programme which aims to strengthen Yulon's position in the international textile market. It is another example of the excellent relationship between the EBRD and Creditanstalt-Bankverein and our continuing cooperation in financing industrial projects in central and eastern Europe."
Angelo Rizzuti, Head of the International Project and Export Finance Department at Bank Austria, said: "Yulon is an encouraging example of the successful privatisation and modernisation of a Slovene industrial company. Bank Austria's participation in the financing of Yulon's investment programme demonstrates our strong commitment to central and eastern Europe and our close cooperation with the EBRD."
The DM 20 million package will finance equipment upgrades and will concentrate the production of the carpet yarn unit in one location in Ljublijana. The project will result in reduced water consumption, energy efficiency improvements and an overall reduction in health and safety risks.
The EBRD's equity subscription is for six years, while the additional loan will match the terms and conditions of the earlier senior loan, which has a term of eight years.
Yulon is majority owned by Aquafil S.p.a., the largest company of the Bonazzi Group, a privately owned Italian textile group. It produces two types of filaments for the nylon textile industry and another for the nylon carpet yarn industry.
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