Pehart Group extends syndicated loan to 78 million Euro

Pehart Group, one of the largest tissue paper producers in Southeast Europe and the largest producer and processor of household paper products in Romania, is extending the syndicated loan obtained two years ago to 78 million Euro.

The funds will support the company’s plans to invest in energy-efficient equipment, green energy solutions and the development of new production capacity and will also increase working capital. Pehart Group plans to invest approximately 20 million Euro in these three areas, with investments to be completed in 2023.

The credit line obtained in 2020 was supported by a syndicate of banks: Banca Comercială Română as Coordinator, Mandated Lead Arranger, Documentation Agent, Facility and Collateral Agent together with ING BANK N.V. Amsterdam, Bucharest Branch, Raiffeisen Bank SA and OTP Bank Romania SA as mandated lead arrangers. For the current expansion of the credit line, Pehart maintains the structure of the same bank syndicate, coordinated by BCR, but this time BCR, ING and Raiffeisen participate in the exposure increases.

“Energy efficiency of production equipment and sustainable development are topics that have been on our minds for many years. We believe this is the path for development in the future and have recently invested in machinery from leading European manufacturers. We have decided to strengthen our efforts to optimise all our production machinery in order to reduce energy consumption, and at the same time we intend to develop our production capacities that will allow us to increase export volumes. Extending syndicated credit means investing in the development of production capacity, in the diversification of the products in our portfolio and in a green future, the only one that offers the prospect of a sustainable life for all of us”, said Gabriel Stanciu, General Manager Pehart Group.

In addition to increasing the volume of exports and consolidating its brands internationally, Pehart aims to consolidate its position as the leading tissue paper producer in Romania in the retail area for its own brands, as well as for the brands of the major retailers. Pehart also plans to develop the Away-from-Home product segment (for HoReCa use, for office buildings, factories etc.), but also to invest in the growth of its own brands, Pufina and Alint, so that they become Romanians’ favourite products. At the same time, the company aims to expand its best-known brand Pufina internationally and to launch a new product, the wet toilet paper, in the near future.

Pehart currently operates two factories, in Sebeș, Alba and Dej, Cluj and produces 100,000 tonnes of tissue paper annually and has a finished product processing capacity of over 75,000 tonnes. 70% of the total quantity of household and industrial products is sold in Romania and the rest goes for export. Over the last 7 years, the company has made significant investments in modern and innovative factories and production lines with world-leading technologies.