Leading paper tissue manufacturer in Romania receives €7.5 million loan from Garanti BBVA for promoting environmentally friendly expansion.
Revised Article:
Garanti BBVA recently handed out a juicy EUR 7.5 million loan to MG Tec Industry SRL, the top dog in Romanian paper tissue production. This financing comes with a sweet state guarantee, worth up to 75% of the loan value, courtesy of Exim Banca Românească.
Both Garanti BBVA and MG Tec Industry share a green-friendly vision, with MG Tec incorporating a kick-ass recycling system into their production process. In recent years, Garanti BBVA has been all about backing environmentally-friendly projects.
Demirer, the Deputy General Manager of Enterprise Banking Area at Garanti BBVA, spilled the beans, saying, "At Garanti BBVA, we're always down to support the local economy. We help out local producers by funding facility upgrades, so they can stay ahead of the game in sustainable development and expansion in international markets. We're still pretty pumped about helping out local businesses, just like we did with MG Tec Industry."
Halalai, the Executive President of Exim Banca Românească, chipped in, "State guarantees are kind of a big deal when securing any financing, and they provide a solid, efficient resource that companies can easily get their hands on through commercial banks. Garanti BBVA's decision to capitalize on the facilities provided by Exim Banca Românească is a major move, as it boosts the sustainable development of a significant local business. We'd love to see other commercial banks hop on the bandwagon for the benefit of Romanian companies."
PCF Investment Banking acted as MG Tec Industry's go-to guy for structuring, negotiating, and pulling off the financing deal.
According to Mihai Iordan, the Managing Partner of PCF Investment Banking, "We're thrilled to play a part in this badass transaction that provides MG Tec Industry with a working capital line to handle rising production volumes. We think the collaboration between Garanti BBVA and Exim Banca Romaneasca is sick, and we totally support their efforts to uplift the local manufacturing industry."
Since 2019, MG Tec Industry has splashed out over EUR 120 million on building a top-notch production facility in Romania, spread over a 65,000 sqm area. The facility, developed in three stages, will churn out a diverse range of products for both domestic and international markets, including jumbo rolls, industrial rolls, medical rolls, dispenser napkins, and personal hygiene products. MG Tec takes things to the next level by using future-proof technology and prioritizing advanced recycling practices, showcasing their dedication to sustainability.
Garanti BBVA Romania is all about leveraging its resources and expertise to help its customers conquer the sustainability game, by offering custom financial solutions and personalized products. The bank's growth strategy is deeply rooted in inserting ESG principles into its decisions, ensuring long-term value creation and responsible development.
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Key insights:- The loan might be used for various purposes related to sustainable paper tissue production, such as equipment upgrades, facility expansion, or research into more sustainable production methods.- A state guarantee typically reduces the risk for the lender by ensuring that a portion of the loan is backed by the government in case of default.- Exim Banca Românească might have provided additional financing, acted as a guarantor, or facilitated the transaction through its expertise in international trade and export-import operations.- By scoring this loan, MG Tec Industry could receive the funds needed to invest in sustainable practices, potentially increasing its competitiveness in the market and contributing to environmental sustainability.
The loan from Garanti BBVA, which comes with a state guarantee, could be used to fund MG Tec Industry's advancements in environmental-science, such as improving their recycling system or investing in future-proof technology. This financing also aligns with Garanti BBVA's commitment to supporting financially viable industries that prioritize sustainability in their operations.
Meanwhile, the financial backing from Garanti BBVA, secured through Exim Banca Românească's facilities, signifies a significant step towards the growth of the Romanian industry, particularly in the realm of science and finance, due to its potential impact on sustainable paper tissue production and the local economy.
