The FINANCIAL — The European Bank for Reconstruction and Development (EBRD) is providing PLN 250 million (€59 million equivalent) to the Polish cable and wire producer Tele-Fonika Kable SA (TFK) as part of a PLN 1.1 billion refinancing package arranged by the commercial lenders BZ WBK and mBank.
The funding will support the implementation of an extensive financial and operational restructuring programme. It will include: completion of the company’s integration and consolidation process, improvements in the IT infrastructure and expansion into the high-tech production sector, according to EBRD.
TFK was established in 1992 as a merger of four formerly state-owned cable companies and has grown from a local enterprise to an international player present in over 80 countries worldwide. The restructuring and modernisation package will allow the company to benefit from the continuing strong demand for cables in local and international markets.
Grzegorz Zieliński, EBRD Director, Poland and Baltics, said: “With this loan the EBRD is supporting an important and successful Polish company in its efforts to address the challenges ahead. The loan will support the company’s comprehensive restructuring strategy based on developing more innovative solutions for the cable market and addressing needs for improvement in the logistics and service areas of the business. By providing a substantial loan in local currency the EBRD is also acting as an anchor in a significant local debt market transaction.”
Monika Cupiał-Zgryzek added on behalf of Tele-Fonika: “The new five-year financing puts Tele-Fonika in a very strong position to meet the requirements of a growing global cable market. We are delighted to have the EBRD as one of our relationship banks and look forward to a successful cooperation.”
Since the beginning of its operations in Poland in 1991, the EBRD has invested €7.6 billion in more than 350 projects in the country. In addition to its wide product range of bilateral facilities for companies and financial institutions, in recent years the EBRD has developed a growing portfolio of capital market investments (both equity and debt), for which demand is high.