New bank loan agreement with EBRD and share capital increase for SOFIA MED
A loan between SOFIA MED, HALCOR’s subsidiary in Bulgaria, and the European Bank for Reconstruction and Development (EBRD) was signed today March the 29th 2013. At the same time, HALCOR proceeded in share capital increase of SOFIA MED, a producer of rolled and extruded copper brass and zinc products. The share capital increase of € 30 million was made through the capitalization of HALCOR’s receivables from SOFIA MED in order to enhance its capital structure.
According to the terms of the agreement, EBRD granted a five-year loan of € 40 million to SOFIA MED with the option to prolong the duration for two more years. At the same time, an agreement with ALPHA BANK, EUROBANK, UBB and PIRAEUS BANK BULGARIA is in progress in order to convert short-term loans of € 60 million to long-term loans (five year) and to continue providing short-term credits of € 25 million.
Through the elongation of financing and the new capitals of EBRD, SOFIA MED will continue its investment plan interminably, and will keep on financing the growing need for working capital due to its increased turnover.