Kyiv, Ukraine, November 6, 2006--Wood-based panel producer Kronospan Ukraine Ltd. in Volyn region has raised a EUR 60 million syndicated senior loan facility from the European Bank for Reconstruction and Development (EBRD), according to Interfax.
The loan agreement was signed on Wednesday, the press service of the EBRD's Ukrainian resident office told Interfax-Ukraine.
"The European Bank for Reconstruction and Development is providing a EUR 60 million loan to Kronospan Ukraine, owned by Kronospan Holdings East Limited, part of the Austrian Kronospan Group, for the installation of a particleboard production plant in Novovolynsk, north-western Ukraine," an EBRD press release said.
EUR25 million of the total loan has been syndicated to Erste Bank der Oesterreichischen Sparkassen AG. The lending terms of the project are not disclosed.
Kronospan is planning to refurbish an existing factory building and install two particleboard production lines. After the installation, Kronospan Ukraine will produce standard and melamine-faced particleboard for use in the manufacture of household and office furniture as well as kitchen and shop fittings.
Kronospan is also planning to implement a wood residue collection system at local saw mills, which will encourage a responsible handling of wood waste.
