The European Bank for Reconstruction and Development (EBRD) and Eurocable group today signed an agreement in Zagreb whereby EBRD is investing 15.5 million euros in Eurocable group through recapitalization, as announced by EBRD and Eurocable group.
EBRD’s investment will enable Eurocable to build a new production facility, which, as stated, will more than double its production from the current 16,747 tons to 38,000 tons of cables annually. Eurocable, with the help of EBRD, plans to build the new factory in Jakovlje near Zagreb. The EBRD loan will help Eurocable meet the growing demand for their existing range, as well as introduce new products that are currently not available in the regional markets.
EBRD financing will also assist in the financial restructuring of the company and the expansion of production, allowing Eurocable to strengthen its existing positions in regional markets and expand into new markets, including Russia and Ukraine, the statement said. It also conveys a statement from EBRD’s Director for Croatia, Charlotte Ruhe, that EBRD, through equity participation, will help the company improve corporate governance procedures and become more efficient and transparent. Eurocable group is, as stated, a leading Croatian company and among the top ten producers and distributors of low-voltage electrical cables in Europe.
