Kufner Group Issues 150 Million Kuna in Commercial Papers to Capital Market

Kufner Group d.o.o., known for the production of polystyrene and lime, today presented its program for issuing its own commercial papers amounting to 150 million kuna, planned for the end of October 2008.

The issuer of the papers and dealer of the program will be Privredna banka Zagreb, and the payment of all amounts arising from the program is secured by joint guarantees from the companies Kamen Sirač d.d., KS-Transporti d.o.o., and Kumal Zagreb d.o.o.

Kufner Group is a holding company established in early 2008 and consists of two strategic business groups, the Kumal business group and the KS business group. According to the holding’s director, Slaven Kufner, the companies owned by him have outgrown their developmental frameworks, necessitating the establishment of a parent company to manage the operations, investments, and development of all companies within the system. The main product of the Kumal group is expanded polystyrene, and Kumal is the second largest producer of this material in Croatia. Kufner Group intends to significantly invest in new production capacities in Croatia and the region, thereby becoming a leader in the market for polystyrene and polystyrene products.

The other grouping within the holding, KS, is focused on the production of quick and hydrated lime, as well as stone products, various types of adhesives, and refractory materials. Kamen Sirač and Lička tvornica vapna, as part of the KS business group, are the strongest in Croatia in lime production and hold a majority share of the market.

According to the financial director of Kufner Group, Dario Sertić, the company’s financial results show consistent growth, and this trend will be maintained through new acquisitions, the opening of new capacities, modernization of existing ones, and the introduction of new products. They also plan a strong push into the markets of Slovenia, Hungary, and Romania.

Goran Kursan, representing Privredna banka Zagreb, announced the issuance of commercial papers by Kufner Group and concluded by stating that the net proceeds from the issuance will be used to refinance existing short-term obligations and to finance current operations, specifically working capital needs. (O. Štiglić)