New long-term syndicated loan for Gorenje

The loan is to finance the expansion in international markets, new appliances development, and working capital.

Gorenje signed an agreement on a long-term syndicated loan approved by a syndicate of six banks. NLB, SID Banka, Banka Koper, Nova KBM, Abanka Vipa, and Gorenjska banka granted to Gorenje a long-term loan of EUR 55 million. The maturity of the loan is seven years.

Approval of the syndicated loan intended for working capital financing, expansion of operations in international markets, and development of washing machines and dishwashers is yet another token of confidence in Gorenje's development strategy on the part of the banks. Gorenje President and CEO Franjo Bobinac commented upon signing the loan agreement: "After successful restructuring in the last two years, which has laid the foundations for a considerable improvement in performance and competitiveness in the highly mature white goods industry, we now proceed with the pursuit of our strategic goals. This loan will improve our financial stability and thus support our endeavours."

The new syndicated loan does not increase Gorenje's overall debt; however, it will improve the maturity profile of its existing financing sources. Gorenje's activities to deleverage continue. By the end of the year, the Group plans to cut its net debt by further EUR 25 million, after having decreased it by EUR 20 million in 2013.

The highest amount in the syndicated loan, EUR 15 million, was contributed by NLB that was also the bookrunner/agent for the credit facility. Upon the signing of the agreement, NLB Management Board President Janko Medja commented: "As noted on several occasions, the banks will support development-oriented businesses and we are happy to invest into new projects. NLB has proven time and again that we are a good financial partner to the most vital part of the Slovenian economy, and that we made our return to the corporate finance market in the last year. We support sound entrepreneurial stories that generate added value, with emphasis on manufacturing operations and exports."

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