Prutul Galati borrows 25m euros from several banks

Vegetable oil producer Prutul Galati will borrow approximately 25 million euros from several banks in order to buy raw materials and acquire a storage base located in Liesti, Galati county. Prutul will take out a 15 million-RON (approximately 4.6 million-euro) credit from Banca Romaneasca, for the acquisition of sunflower, soy seeds, rapeseed and cereals. The loan will be guaranteed by the transfer of receivables due as part of a contract closed by the company with Kaufland Romania. The company will borrow another 10 million euros from Raiffeisen Bank to purchase raw materials, which will be guaranteed by the mortgages and liens on the company’s fixed assets. The company will also take out a 10 million-euro credit facility from Alpha Bank to finance its day-to-day activities. A credit line worth three million euros from OTP Bank will also be extended until July 31, 2008. At least 75% will be used to purchase raw materials, with the remainder used to pay utility providers. Prutul also intends to take over the Liesti storage base in Galati county, which has a surface area of over 10,000 square metres, and a value of 230,000 euros (VAT excluded). The company intends to borrow 200,000 euros from Raiffeisen Bank for this purpose. Prutul Galati posted a 17 million-euro turnover in the first half of this year, up 31% against the same time last year. For the whole year, Prutul registered a 75% increase in turnover, to around 48 million euros.