Thursday, 19th September 2013, Velenje, Slovenia
Gorenje obtains a syndicated loan from SID banka and NLB
Gorenje President and CEO Franjo Bobinac, Management Board President at NLB Janko Medja, and Management Board President at SID banka Sibil Svilan signed today, September 19, an agreement according to which NLB and SID banka would provide a long-term syndicated loan of EUR 30 million to Gorenje. This is certainly a token of confidence on the part of NLB and SID banka in Gorenje's development strategy, as the two banks take the role of proactive partners to Slovenian economy in a time of crisis. In this respect, loan maturity and other terms are of particular importance. The loan, repayable in 5 years, will not increase Gorenje's overall debt.
NLB and SID banka will contribute one half of the total loan amount each. Gorenje will allocate these funds for investments into the transfer of washing machine, dryer, and dishwasher production from Sweden to Velenje, Slovenia, and for further improvement of the average maturity of financing sources.
Gorenje President and CEO Franjo Bobinac: "This new long-term loan will strengthen the Gorenje Group's financial stability, which is especially important in a time of harsh conditions in the markets and a time of restructuring which is currently under way at the Group and includes strategic shifts of manufacturing operations. The syndicated loan is a token of confidence on the part of NLB and SID banka in Gorenje and Gorenje's development strategy, as well as a clear sign that Slovenian banks are willing to finance sound, quality projects. Gorenje has a long history of working with the SID banka both in finance and in insurance; now, NLB has joined the team-up with a fresh loan."
Management Board President at SID banka Sibil Svilan: "With this financing deal, we continue to pursue our role of a development bank fostering the development of Slovenian companies by providing them equal financing terms. Thus, we are improving the competitiveness of the companies that create and maintain the jobs and contribute to Slovenia's sustainable development."
Management Board President at NLB Janko Medja: "NLB is actively standing by and financially supporting the most vital part of the Slovenian economy, which remains development-oriented and has the markets, the right products, and an adequate cash flow, despite the very harsh environment at home and fervent competition abroad. NLB is always interested in working with solid companies like Gorenje. We are happy to invest in good projects. We are proud to be Gorenje's partner among the many competing banks, and to step up our cooperation."
Disclaimer: The English text for all announcements is for information purposes only!