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Alum SA Romania

Romania | Materials

Identification Code:: OP/17/0045
Total Operation Cost:: 25.000.000 USD
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

20.000.000 USD – 20 Dec 2017
: BSTDB Signed Amount – Signed Date

20.000.000 USD – 17 May 2018
: Status:
Completed
Description and Purpose of the Operation:: Long term debt financing for the capital expenditure program of Alum's alumina production facility
Countries of Operation:: Romania (100,00%)
Financial Product:: Loans
Sector:: Materials
Domain:: Private
Borrower/Client:: Alum SA, Romania
Co-Financers/Participants:: Garanti Bank SA, Romania
Guarantors/Sponsors:: n.a.
Developmental and Regional Cooperation Impact:: Development impact via generation of additional export and tax revenues. BSTDB will contribute to the activities of a successful Group in Romania. Regional impact mainly through exports In addition to the existing export destinations, the company added new markets, including Turkey. Assuming that eventual improvement in efficiency will expand company’s total output, its export potential can increase and have an important regional cooperation element given the existing export channels and possibility to add new ones.
Environmental Classification and Impact:: The Operation was screened as medium-high E&S risk and assigned Category B+. Manufacturing of calcined alumina from bauxite ore may generate diverse negative E&S risks and impacts that can propagate beyond the site boundaries, but which can be managed through recognized performance standards and practices, process design criteria, and guidelines applied by the alumina refining industry. The E&S due diligence considered the following key E&S issues that have the potential to affect the Borrower, the environment and human health, safety and security, and ultimately the Bank: i) legal and regulatory compliance of Alum SA; ii) assessment and management of the associated E&S risks and impacts; iii) the employed labor and working conditions, including occupational health and safety; iv) pollution prevention and abatement; and v) impacts on the local community and engagement with stakeholders. The due diligence concluded that these risks and impacts however are not likely to be significant as the Company has implemented comprehensive and efficient preventive and mitigations measures, including integrated E&S management systems that allow addressing any potential risks and impacts in a systematic and continuous basis and respond timely and adequately in cases of emergency.
Operation Leader:: General Industries, Transport, Tourism 2
E-mail:: gitt2@bstdb.org