Centravis Raises EUR 35 M From Ukreximbank To Finance Its Investment Program
The state-owned Ukreximbank (Kyiv) has opened a long-term credit limit for PJSC Centravis Production Ukraine, a company of Centravis Ltd. holding, in the amount of EUR 35M, which is equivalent to UAH 1 billion 177.477 million.
According to Centravis press release, the company is going to use these funds to produce new types of seamless pipes, introduce environmental and energy-saving technologies and further upgrade the production.
“The bank opened a credit limit of EUR 35 M for five years to maintain the high competitiveness of products in world markets as well as to ensure timely and full implementation of the investment program aimed at developing sales of high value-added products”, said Aleksandr Isniuk, Director of Ukreximbank’s Private Sector Corporate Business Department. In turn, Centravis’ CFO Alexandre Joseph added that raising funds in Ukreximbank would strengthen the company’s financial stability and would provide the opportunity to annually invest at least EUR 7M in the development and release of new products.
“Since we work with world top brands, we need to be proactive and maintain focus on efficiency and customer service. We believe that cooperation with Ukreximbank is a classic win-win story for Ukraine. Our company exports over 98% of its products. The foreign exchange earnings amount to about EUR 150 M. This helps to improve the foreign trade balance of Ukraine and strengthen the “made in Ukraine” presence in the world market”, stated Joseph.
Despite the tailspin due to the coronavirus pandemic, Centravis maintained a stable position among the world’s best manufacturers of seamless pipes at the end of 2020. The production volume amounted to 19.05 thousand tons. The company doubled its EBITDA compared to 2019 — to EUR 14 M. As reported, the shareholders’ meeting of PJSC Centravis Production Ukraine decided to raise a loan of EUR 35 M on February 18 this year. At the same time, the company transfers property valued UAH 2 billion 655.980 million as collateral. According to the latest annual financial statements, the value of the issuer’s assets is UAH 4 billion 626.745 million. According to the latest annual financial statements, the ratio of the market value of the property or services that are the subject of the transaction to the value of the issuer’s assets is 25%.
Ukreximbank, fully owned by the state, was established in 1992. According to the National Bank of Ukraine, as of January 1, 2021, Ukreximbank ranked third among 73 banks operating in the country in terms of total assets (UAH 246.877 billion).