Romania's EximBank backs Electrogrup with 11 mln euro loan


BUCHAREST (Romania), April 18 (SeeNews) - Romania's EximBank said on Tuesday it has reached an agreement to lend 11 million euro  ($11.7 million) to Electrogrup, a local company active in energy infrastructure, telecommunications and civil engineering areas.

The financing package includes a multi-product facility for the working capital needed for running the business and a guarantee facility that will be used for participating in an investment project in Poland, where Electrogrup has a subsidiary, EximBank said in a press release.

"We trust that the agreement concluded with Electrogrup represents the first stage of a long-term partnership," Eximbank executive president Traian Halalai said.

He added that the bank is available and has the necessary resources for supporting the expansion of the foreign commercial operations of Romanian entrepreneurs and will continue to improve its financial solutions in order to offer products that are aligned to European standards and practices in terms of financing business development.

Electrogrup is one of the few Romanian companies that has consistently expanded its activity abroad, EximBank noted.

The Cluj-based company has opened in the past few years subsidiaries in Germany, Russia and Poland, participating as a construction company in investment projects developed by the respective states.

’’We would be glad to have big infrastructure projects in Romania so that we could evolve. Until then we increase our expertise in Germany, Russia, the UK, Poland and other countries, continuing our shareholders’ strategy of transforming Electrogrup into a Romanian capital corporation," Electrogrup's founder and shareholder Teofil Muresan said.

Electrogrup was founded in 1997 by Teofil and Simion Mureşan in Cluj, central western Romania and runs complex projects in energy, civil and telecommunications infrastructure through its three subsuduaries: Nova Power & Gas, Wesee and Direct One. The company has more than 400 employees and aims for a total turnover of 256 million lei ($60.3 million/ 57 million euro) in 2017, of which exports will represent some 30%.

Majority state-owned EximBank focuses on providing financing, guarantees and insurance services to Romanian companies, particularly exporters, small and medium-sized enterprises and companies running projects in core sectors of the economy.

(1 euro=4.5188 lei)

More stories to explore
5 / 5 free articles left this month
Get 5 more for free Sign up for Basic subscription
Get full access Sign up for Premium subscription