Romstrade borrows €140 mln from Credit Suisse

Romstrade, an infrastructure company controlled by businessman Nelu Iordache, last year concluded a loan with Credit Suisse bank, worth some €140 mln, to finance the company’s infrastructure projects. This is the largest loan taken out by a Romanian company from a commercial bank since lending was blocked last fall due to the financial crisis. “Negotiations began in the fall of last year and all banks on the local market were contacted. Many were interested, given the final value of the loan we want to obtain - €400 mln. Given last fall’s environment, we would have needed a syndication or specific solutions to accomplish our goals,” the company’s President, Dan Trasculescu, told Business Standard. Among the banks that Romstrade negotiated with are the country’s largest lender, Banca Comerciala Romana (BCR), owned by Austrian Erste group, Raiffeisen Bank, Citibank, and other funds operating on the insurance segment. “We held talks with [lenders] here, who needed various approvals from their mother banks. Nothing was finalized by November-December, although talks were in an advanced stage with many of them,” Trasculescu said. “Credit Suisse appeared at that time. It already had significant experience in Romania,” he added. Of the total €400 mln it plans to borrow, Romstrade signed a deal for a loan worth €140 mln. The funds must be reimbursed by 2012-2013. Trasculescu added that Credit Suisse required guarantees that the government is aware that Romstrade is taking out this loan. “The transaction in its entirety was agreed upon and endorsed by the Romanian government,” he stressed. The company is involved in several infrastructure projects, including airport modernization. Some 70-80 percent of the company’s turnover comes from public sector contracts.