ZAGREB, Sept 2 (Hina) - The International Financial Corporation (IFC), a World Bank branch dealing with the development of the private sector, on Monday signed a contract with the Belisce company for a EUR22.9 million loan intended to
help in the company's expansion and modernisation.
ZAGREB, Sept 2 (Hina) - The International Financial Corporation
(IFC), a World Bank branch dealing with the development of the
private sector, on Monday signed a contract with the Belisce
company for a EUR22.9 million loan intended to help in the company's
expansion and modernisation. #L#
The IFC investment will help Belisce improve the effectiveness of
its operations, buy paper and packing material manufacturers on the
regional level, increase production, and open new jobs.
The project worth EUR45.7 million is aimed at boosting Belisce's
potential as a significant manufacturer of paper and packing
material in Central Europe.
The IFC investment consists of a EUR10 million loan from its own
funds and a EUR12.9 million syndicated loan from other
participating investors.
In view of strengthening its regional position, Belisce has already
purchased Valkarton, a Slovene paper-processing company with a
branch in Macedonia. In order to finance this purchase, Belisce has
already issued the first corporate bonds in Croatia.
Part of the bonds will be paid out with funds obtained through the
IFC loans.
Belisce accounts for 40 percent of Croatia's paper and packing
material industry. The company's output last year included 186,700
tonnes of packing paper, 24,500 tonnes of ribbed cardboard boxes,
1,550 tonnes of spiral and 570 tonnes of plastic and other packing
material.
IFC has financed three Belisce expansion projects in the past, in
1973, 1980, and 1997. Loans for the first two have been paid out,
while the payment of the third is underway.
(hina) ha sb