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PLIVA OBTAINS TWO-YEAR PROLONGATION OF SYNDICATED LOAN

ZAGREB, June 26 (Hina) - A leading Croatian pharmaceutical firm 'Pliva' has obtained a two-year-long prolongation of a $65-million syndicated loan, which expired on 23 June this year. The loan, concluded in June 1998 with a syndicate of 16 banks, was arranged by United Bank of Switzerland (UBS) and Sociate Generale (SG). The loan service was three years, and an interest rate was LIBOR increased by 0.8 percent (i.e. 80 basic points). The loan was taken for the financial restructuring of Pliva's branch in Krakow, Poland, and for the completion of building Pliva's plant for manufacturing the azitromicin in Croatia. The company reported today that the banks had given the green light for the prolongation of the loan under the previously agreed conditions. A member of the Pliva management, Zeljko Peric, said this move of the bank syndicate helped Pliva's ambitious plans about its expansion in
ZAGREB, June 26 (Hina) - A leading Croatian pharmaceutical firm 'Pliva' has obtained a two-year-long prolongation of a $65-million syndicated loan, which expired on 23 June this year. The loan, concluded in June 1998 with a syndicate of 16 banks, was arranged by United Bank of Switzerland (UBS) and Sociate Generale (SG). The loan service was three years, and an interest rate was LIBOR increased by 0.8 percent (i.e. 80 basic points). The loan was taken for the financial restructuring of Pliva's branch in Krakow, Poland, and for the completion of building Pliva's plant for manufacturing the azitromicin in Croatia. The company reported today that the banks had given the green light for the prolongation of the loan under the previously agreed conditions. A member of the Pliva management, Zeljko Peric, said this move of the bank syndicate helped Pliva's ambitious plans about its expansion in west Europe. The prolongation of the loan under the same conditions reflects the firm confidence which banks place in Pliva, Peric said adding that the a loan margin of 80 basic points has been the lowest interest rate a Croatian company has achieved on international capital markets since the Russian crisis in 1998. (hina) ms

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