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The European Bank for Reconstruction and Development (EBRD) is providing a US$ 28 million loan to Yildirim Holding AS, a Turkish conglomerate and longstanding Bank client, for the acquisition of AlbChrome, a metal mining company in Albania. Raiffeisen Bank International AG and Credit Europe Bank will co-finance the purchase with loans of US$ 25 million and US$ 14 million, respectively.
Charlotte Ruhe, EBRD Managing Director for Central and South-Eastern Europe, said: “The EBRD is supporting Yildirim’s expansion into a new market, which will not only bring new foreign direct investment to Albania, but a focus to the sustainable development of AlbChrome. The company will be the first entity in the country to develop a roadmap for effective climate action. AlbChrome will promote access to new skills and employment for local workers across its mines and plants, which are located in less developed regions of Albania. Skills, digitalisation and economic inclusion are at the top of the Bank’s agenda in Albania. Moreover, sustainable mining is important to the Albanian economy.”
Serdar Ate?, Structured Finance Manager of Yildirim Holding AS, said: “Throughout the years, Yildirim has increased its asset portfolio through numerous mergers and acquisitions. At the same time, we continue to invest in our organic growth initiatives. We have partnered with the EBRD in a number of projects and wish to increase our collaboration in all regions where the EBRD operates.”
EBRD financing will be provided through two facilities: up to US$ 8.4 million to refinance AlbChrome’s existing debt and up to US$ 19.6 million to Yildirim Albanian Mining Investments, a subsidiary of the Turkish conglomerate, to partially fund the acquisition.
Yildirim Holding is one of the largest exporters of ferrochrome globally. The mineral is crucial to the production of stainless steel and other metal alloys. Chromium, a component of ferrochrome, is also used in many other industries, including the production of electric cars.
To date, the EBRD has committed almost €1.8 billion to projects in Albania. In 2021, EBRD investment in the country exceeded €200 million.