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Kastamonu

Bulgaria, Romania | Materials

Identification Code:: OP/14/0005
Total Operation Cost:: 31.500.000 EUR
Maturity:: 84 months
Operation Status:: BSTDB Approved Amount – Approval Date

31.500.000 EUR – 10 Jul 2014
: BSTDB Signed Amount – Signed Date

31.500.000 EUR – 20 Oct 2014
: Status:
Completed
Description and Purpose of the Operation:: Integrated Wood Industry Black Sea Expansion Long-Term Facility. Corporate loan to finance the Group's expansion project and associated working capital needs in Romania and Bulgaria.
Countries of Operation:: Bulgaria (24,00%), Romania (76,00%)
Financial Product:: Loans
Sector:: Materials
Domain:: Private
Borrower/Client:: Kastamonu Entegre Agac Sanayi ve Ticaret A.S., Turkey
Co-Financers/Participants:: -
Guarantors/Sponsors:: KEAS Holding BV, Netherlands
Developmental and Regional Cooperation Impact:: BSTDB participation in the Operation would help bring a positive social development impact. It will provide quality products in the Black Sea region's market at prices affordable for furniture manufacturers and construction organizations. It will create additional employment and substitute imports, and it will increase the final utilization ratio in the industrial production structure of the region. In addition it will promote cooperation among the member states, as the Sponsor is a Turkish entity investing in Russia, Romania and Bulgaria. The Group's products are sold almost in all of the countries of the Bank's operation.
Environmental Classification and Impact:: The operation is screened as Category B+. The Environmental and Social Assessment concludes that particleboard production at the Client's facilities in Bulgaria and Romania has the potential to generate medium to high adverse environmental and social impacts, but which can be prevented and mitigated by implementing appropriate measures. The Plants are generally compliant with the applicable national and the Group's corporate requirements in terms of environment, labor, occupational health and safety issues, as well as the recognized industry standards. The Plants management is making continuous efforts to institute appropriate management systems in order to address any environmental and social risks and impacts in a structured and continuous basis and respond adequately in cases of emergency.
Operation Leader:: General Industries, Transport, Tourism 2
E-mail:: gitt2@bstdb.org