LONDON, Nov 30 (Hina) - The Croatian food company Agrokor and the European Bank for Reconstruction and Development (EBRD) signed a contract on a DM300-million-worth syndicated loan in London on Thursday.
LONDON, Nov 30 (Hina) - The Croatian food company Agrokor and the
European Bank for Reconstruction and Development (EBRD) signed a
contract on a DM300-million-worth syndicated loan in London on
Thursday. #L#
The loan, insured by a seven-bank international syndicate, will be
used for the financial restructuring of the company's balance
sheet, payment of existing debts and support for further
development and growth, both on the domestic and foreign markets.
The loan is the biggest investment of this kind in a Croatian
company. EBRD's share in the loan amounts to 70 million euros and
the remaining amount was secured by domestic and foreign commercial
banks.
The EBRD recently announced a new strategy for Croatia, aimed at
supporting the Government's efforts to reduce the state's role in
the economy, attracting private capital and promoting a stable
growth.
Agrokor is the first private Croatian company to access the
international capital market completely independently, without
the support and guarantees of the state and the only means of
insurance are Agrokor's property and shares, Agrokor director
Ivica Todoric said.
EBRD president Jean Lemierre said the future development of
Croatia's economy would depend on the ability of companies to make a
more determined step toward the international market. This
syndicated loan will improve the reputation of other Croatian
companies on the international financial market as well, he said.
The loan's payment term is seven years, with a grace of a year and a
half, another year and a half of reduced payment of the capital
amount, and an interest rate of nine percent.
(hina) rml