Burci obtains €100 mln to refinance current debt

The four lenders are Royal Bank of Scotland, through its ABN AMRO Bank subsidiary in the Netherlands, Citibank Europe, ING Bank’s subsidiary in Bucharest, and Piraeus Bank Romania.

The contract was signed by IRS on October 9th. “The process started in the middle of the year, before the crisis began. But all the documents were very well structured and it proved to be a secure business,” IRS officials told Business Standard.

Of the total amount, €60 million represents a three-year loan while €40 mln is in the form of a revolving loan. The money will be used to refinance the company’s current debt and to support the expansion of the division.

Recently, the IRS official announced that the group intends to obtain a railway license for the Serbian and Macedonian markets. “We want to expand to nearby markets. We are also interested in Bulgaria, where we can sell our railway cars,” he added.

IRS is also considering the Russian and Kazakh markets, where the demand for cars could surge in the coming ten years.

In Romania, Burci owns the local freight transportation market leader, Servtrans, and produces railway freight cars in its own factories in Romania: Meva, Astra Arad, and Romvag Caracal.