Beohemija signs loan agreement with EBRD - Zrenjanin-based company gets EUR 68 million for development projects

Management of the company Beohemija signed today in Zrenjanin an agreement with the representatives of the European Bank for Reconstruction and Development (EBRD) and four commercial banks on the approval of a development loan of EUR 68 million.

The agreement was signed by Director of the EBRD Office in Belgrade Hildegard Gacek, Director General of Beohemija Zeljko Zunic, and representatives of Eurobank EFG, Erste Bank, Societe Generale, and UniCredit Bank.

Of the total amount of the loan, the EBRD will provide EUR 20 million, while EUR 48 million will be granted by the consortium of banks.

According to the words of bankers, this arrangement ensures longer repayment periods and lower price of funding for Beohemija.

Director Gacek stressed after signing the agreement that that document would make it possible for the leading Serbian manufacturer of household cleaning products to keep developing its operations in the country and the region.

- Beohemija will become an example for others in the market of what to do to be financially successful, energy efficiency and responsible towards environment - said Gacek.

According to her words, this project will be a demonstration of the successful structuring of the leading company in the chemical sector in Serbia.

Beohemija Director General Zunic pointed out that that agreement represented a new step in the development of Beohemija, which registered over 40 percent larger sales revenue in the domestic market and almost 20 percent bigger exports in the first half of 2011.

- Our next step is modernization of production capacities and operational and technological restructuring of the company with the aim of enhancing the productivity, energy efficiency and environment protection - Zunic underlined.

Beohemija will invest the funds from the loan in further development of operations and financial restructuring.

The business system of Beohemija is composed of the factories of liquid and powder detergents and home cleaning products and packaging in Zrenjanin, the cosmetic industry Dahlia in Belgrade, and the industry of aggressive chemical products Brixol in Vrsac.

Beohemija has over 400 products in its product portfolio, including duel, spin, dahlia, hera and bekolino.

In 2010, Beohemija invested EUR 10 million in the company's development, registered 25% larger sales revenue in the domestic market and 60% bigger exports than in 2009.

Beohemija employs about 810 workers and exports its products to the markets of seven countries: Bosnia-Herzegovina, Montenegro, Macedonia, Croatia, Slovenia, Albania, and Bulgaria.