Luxten seeks 40m-euro loan through Citibank London

Luxten Lightning, one of the most profitable companies in Romania, has authorised Citibank London to contract a credit worth some 40 million euros, sources from the financial market told ZF. The loan is to be later syndicated among several banks, according to a model already used in other cases of private funding. The funds attracted by Luxten will go in almost equal shares to refunding older debts, as well as to running large-scale projects. Luxten is fully able to self-fund its current operations and those connected to its working capital, from its cash flow. Luxten reported a net profit worth 22.6 million euros for 2005, and a turnover worth over 100 million euros. The funds earmarked for investments could be used to modernise a group of seven micro hydroelectric power plants acquired in July this year, whose output is currently insignificant. Luxten made the strategic decision to enter the electricity generation segment in order to supplement its portfolio of activities on the energy market. Company representatives had not made any comment on the subject by the time this issue was ready for print.