The European Bank for Reconstruction and Development (EBRD) made its first investment into the private Romanian sector: tissue paper producer Pehart Tec from Alba county (Transylvania, Central Romania) received 6 million euros. The company will use the money to expand its regional exports, volume productions and to introduce new products on the market.
The EBRD funds will insure 80% of the producer’s energy needs. The company aims to reduce its total energy costs by 1.5 million euros annually. EBRD representatives did not wish to reveal what they will get in return for this investment.
Presidet of the group Pehart Tec belongs to, Ioan Tecar, said the investment will help increase the number of jobs, from 260 to approximately 380. The business figure is expected to drive up from 1.8 – 2 million euros per month to 4 – 5 million euros. The 6 million euros investment is part of a 26 million euros project: 20% is self-funded and the rest is borrowed from local banks.
Head of EBRD Romania Claudia Pendred declared that the bank has already invested 500 million euros in Romania this year. Banks and infrastructure are favourites, but EBRD started to be interested in agriculture, media and the consumerist sector. The main selection criteria for a company are its profitability, a stable financial history and a management structure able to insure its growth, Pendred said.
In two weeks’ time, EBRD will sign an agreement with a Romanian energy company for a significant loan, she added. So far, BERD has invested 4.2 billion euros in 250 Romanian projects.