BELOVO PAPER MILL ANNOUNCES A EUR 5 MILLION DEBT FINANCING AGREEMENT WITH BULGARIAN DEVELOPMENT BANK

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06.03.2019

BELOVO PAPER MILL ANNOUNCES A EUR 5 MILLION DEBT FINANCING AGREEMENT WITH BULGARIAN DEVELOPMENT BANK

Belovo Paper Mill announces a EUR 5 million debt financing agreement with Bulgarian Development Bank

Belovo Paper Mill is pleased to announce the commencement of its cooperation with government-backed Bulgarian Development Bank. The debt refinancing and restructuring agreement includes a revolving facility and a long-term component for capital expenditures, which primarily focus on the upgrade of the two VOITH paper machines.

“One of our primary targets has been to improve the capital structure of the company with a partner financial institution that is willing to support the next steps of the plan that has been carved out. Today, we are in the pleasant position to declare that such an agreement has been reached with one of the most prominent financial institutions in the country. This comes as a reconfirmation of our strategy, which sets to tap into the unexploited opportunities in semi-finished products (tissue jumbo rolls) in the Balkan region, taking advantage of the macro fundamentals of Bulgaria, that provide a cost-benefit to industrial producers, and the regional competitive dynamics of the tissue sector.”, said Kalin Yonov, CEO of Belovo Paper Mill.

Radoslav Pashov, CFO of Belovo Paper Mill, added: “The investments to be performed with the funds secured are expected to lower our cost base, allow for the increase of our output and eventually improve the financial performance of the company. The revolving facility shall increase the competitiveness of the credit terms offered by the company and allow for the planned sales increase.”

The refinancing agreement follows the recent delisting of Belovo Paper Mill from the Bulgarian stock exchange, post the tender offer submitted by Pabolux S.A. and a EUR 1 million capital increase. As a private company with solid debt financing, Belovo Paper Mill is now planning to further boost its equity capital.

Mr. Konstantinos Karagiannis, Chairman of the Board of Directors of Belovo Paper Mill, commented: “On behalf of the Board of Directors, I would like to express our sincere appreciation towards the management team of the company that has successfully steered the debt refinancing process.”

Mr. Dimitris Zeritis and Mr. Georgios Zeritis, Vice-Chairmen of the Board of Directors of Belovo Paper Mill stated: “We would like to thank Bulgarian Development Bank and its executives for their confidence towards the plan formed and the business, one of Bulgaria’s historical industrial enterprises dating back to the 1900’s. We are pleased to have the support of a government-backed entity, which is rightfully here to sustainably boost GDP growth via financing of export-focused manufacturing.”