The Black Sea Trade and Development Bank (BSTDB) is providing a USD 40 million corporate loan to Romanian aluminium producer ALRO, part of Vimetco Group, for its capital investment program; the seven-year loan will be used primarily for improving the company's energy management performance as well as its high value-added production capacity, a release informs on Wednesday.
The total cost of the project amounts to around USD 95 million to be also financed by Romanian and international commercial banks.
"Supporting responsible ESG investment is our priority goal as a regional development bank. We are delighted to see our long-term client introducing energy efficiency measures and environmentally sustainable practices that are in line with the Romanian Government's policy priorities. Given the positive outlook for the economy, we believe the company will be able to meet increased domestic demand and bring substantial development impact to the Romanian economy including job creation, export promotion and increased revenues for the state budget," said BSTDB President Dmitry Pankin.
In his turn, ALRO chairman Marian Nastase said that the company's focus is on sustainability "and therefore it has taken major steps in communicating the progress made in this area. ALRO is one of the leading companies in Romania having as specific objective meeting climate neutrality targets by implementing state-of-the-art technologies. We run a responsible business and the significant investments made in projects aiming to protect the environment by reducing emissions, improving energy efficiency and optimizing the use of resources are proof of our progress in this direction. This new agreement represents a recognition of our efforts and we are delighted to continue the partnership with BSTDB, an active supporter of our sustainable projects and businesses."
Today's agreement marks a new phase in BSTDB's partnership with ALRO which started in 2015. The bank has since provided a total of USD 120 million in support of the Group's development.