Sevojno Rolling Mill - long term loan

complete

The proposed project will enable East Point Holdings Limited (EPH) implement their post-privatisation capital investment programme in Sevojno. The loan will support the finance of new equipment and modernization of existing equipment in order to increase production capacity, improve operational efficiency and product quality. The operational restructuring and new investments in Sevojno, a company privatised under the Government privatisation scheme, will demonstrate to the local and foreign investors that such privatisation can be successful in terms of increasing efficiency and profitability. The proposed project will also accelerate the Company’s own corporate governance changes by committing it to high standards of corporate behaviour and timely and accurate financial reporting to external parties. East Point Holdings Limited, a commodities trading company from Cyprus, and Sevojno, a copper mill producing semi-finished copper and brass products based in Serbia and Montenegro. EUR 16 million senior loan to include EUR 2 million provided to the EBRD by the Italian government within the Italian Risk Sharing Facility, a facility set up pursuant an agreement between the EBRD and the Italian government for the co-financing of projects in Serbia and Montenegro. EUR 30.1 million. This project was screened C/1 requiring an environmental audit. The audit identified a range of environmental, health & safety issues associated with the operations, in particular those relating to air emissions from foundry and rolling mill operations; wastewater discharge, hazardous waste management and worker health and safety issues. The Company has implemented an Environmental Management System in accordance with ISO 1400. The Investment Programme will contribute to environmental upgrades which were identified in the EBRD’s Environmental Action Plan (EAP). The Bank’s Environmental Department is working closely with the Company to finalise the implementation details of the EAP. An energy efficiency audit was conducted in December 2004, under a Central European Initiative funded agreement. Mr. Zoran Drakulic, President 30 Vyronos Avenue 1096 Nicosia, Cyprus Email: zoran@as400.point-group.com tel: + 357 226 79 490 fax: + 357 226 79 485