Poland's Ciech secures financing to aid pre-privatisation restructure

16 February 2011 16:27  [Source: ICIS news]

PRAGUE (ICIS)--Ciech has secured financing from the EU-backed European Bank for Reconstruction and Development (EBRD) which should help it to restructure in preparation for a privatisation relaunch, Poland's largest chemical group said on Wednesday.

The EBRD has given its final assent to up to zloty (Zl) 300m ($103.1m, €76.3m) of financing in the form of a euro-denominated investment credit, it added.

The financing would form part of a wider five-year refinancing package worth Zl 1.2bn, obtained by Ciech to enable a major pre-privatisation restructuring programme, the company said.

“The EBRD financing will support Ciech in its funding needs for capital investment, including environment and energy efficiency projects, and will offer a natural hedge for the group's long foreign exchange exposure," said Ciech's chief financial officer Rafal Rybkowski.

"The EBRD’s participation in the transaction is a crucial element in providing Ciech with a complex and robust financing package,” he added. 

Lucyna Stanczak, EBRD Director for Poland, said: "We believe that our financing will prepare Ciech for further eventual privatisation. We are especially encouraged by the government’s strong commitment to this process and expect its successful implementation in the near future.”

Ciech is Europe's second largest soda ash producer and Poland's only producer of toluene di-isocyanate (TDI).

($1 = Zl 2.91, €1 = Zl 3.93)

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By: Will Conroy
+44 20 8652 3214

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