EBRD supports construction sector in Romania

Local currency loan to Lafarge Ciment (Romania) S.A. also gives boost to smaller local firms

In response to the impact of the global crisis on the Romanian construction sector, the EBRD is supporting Lafarge Ciment (Romania) S.A., one of the three leading cement producers in Romania, with a €20 million loan in Romanian lei to finance the company’s operations and to support its working capital requirements.

The seasonality of the construction sector and the shortage of available commercial lending to the building material sector have had a significant impact upon Lafarge Ciment (Romania) S.A. cash flow. By this important action, the EBRD actively supports a long-lasting client to maintain its performance.

In addition, the EBRD funds will enable Lafarge Ciment (Romania) S.A.to continue to support its customers and suppliers, which is even more important in the current economic conditions

This project also demonstrates the EBRD’s strong support for the energy efficiency and carbon credit efforts that are in the forefront of Lafarge’s operations. With support from the EBRD, Lafarge Ciment (Romania) S.A. will be able to continue to advance its recycling activities and invest in new solid waste and oil sludge processing facilities.

“Through this transaction the EBRD is reinforcing its support to the construction sector in Romania in the current adverse market conditions. The Bank’s financing will reach the sector more widely by supporting an important player, thus benefiting smaller local companies,” said Claudia Pendred, EBRD’s Director for Romania.

"In spite of an economic downturn, which is sharper in Romania than many had been expecting a few months ago, Lafarge continues to have full confidence in the potential of this market and will continue to invest in its development. In this environment where credit is under stress, we are glad that the EBRD has accepted to support us through this troubled time.", Philippe Platon, CFO of Lafarge Ciment (Romania) said.

The EBRD financing is part of the €250 million Mid-Sized Corporate Support Facility, created in order to support the Bank’s existing and recent clients in the current challenging environment.

Since the beginning of its operations in Romania the EBRD has committed over €4.2 billion across more than 255 projects, which attracted additional investment of over €7.4 billion.