Poland’s Ciech meets banks’ debt reduction target of Zl 400m

21 March 2011 13:28  [Source: ICIS news]

PRAGUE (ICIS)--Ciech has met a debt reduction target of zloty (Zl) 400m ($139.4m, €98.3m) that was set by a consortium of seven banks, Poland’s largest chemical group said on Monday.

The repayment, equivalent to about one-quarter of Ciech’s outstanding debts, had been made in advance of the 31 March deadline thanks to a successful share capital increase and financial restructuring, it added.

Ciech’s financial situation was also eased in February when the EU-backed European Bank for Reconstruction and Development (EBRD) provided the company with Zl 300m in the form of a euro-denominated investment credit.

The financing was aimed at assisting Ciech with restructuring in advance of the anticipated relaunch of its stalled privatisation.

“Our new credit agreements [with the bank consortium and the EBRD] and the debt reduction will significantly reduce the cost of financing for the Ciech group,” said Ciech CEO Ryszard Kunicki.

($1 = Zl 2.87 /€1 = Zl 4.07)

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By: Will Conroy
+44 20 8652 3214

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