Romanian aluminium maker Alro to get US$70 million as working capital

Alro Slatina, Russian investors-controlled aluminium and aluminium alloy producer in south-eastern Europe, approved a US$70 million supplement to a credit facility contracted in 2015 through a US$ 167 million syndicated loan.

Separately, Vimetco hired Swiss Capital for selling part of its 84 per cent stake in Alro, according to unofficial sources.

The bank syndicate that finances Alro includes Raiffeisen Bank International, OTP Bank Romania, Banca Transilvania, Unicredit Bank, Garanti Bank, Intesa Sanpaolo Bank Romania, and Eximbank.

Out of the total US$70 million, US$20 million would cover the company’s general and working capital needs and the rest US$50 million would finance programme-related investment expenditure for years 2018-19, as per the plan.

In the first nine months of the year, Alro recorded a net profit of RON 203 million (US$49.5 million). The total capitalisation of the company is RON 2.4 billion (US$585 million). Russian group Vimetco has 84 per cent stake but an investment fund Proprietatea Fund owns 10.2%.

In the summer of 2018, Vimetco and a minority shareholder attempted to sell a 54% stake in Alro, but their attempt failed.