- Loan to bridge potential need for working capital
- EBRD boosts resilience of private firms as they weather pandemic
Romanian steelmaker Donalam is planning to bridge a potential working capital gap with a €5 million loan from the European Bank for Reconstruction and Development (EBRD).
Donalam, located in Calarasi, south-eastern Romania, was set up in 2006 after the Italian group Beltrame, the European leader in merchant bars, bought the local Siderca rolling mill. Steel rounds produced at Donalam are sold to Germany, Italy and markets in central and eastern Europe, for use in industrial and mechanical engineering, the automotive sector and the oil industry.
The company will use the two-year EBRD loan to finance its working capital needs and bridge liquidity gaps caused by the Covid-19 pandemic.
The EBRD has previously provided €4 million in financing for investments at the Donalam steel mill.
The Bank is a major investor in Romania. To date, it has invested €8.8 billion in the country’s economy through 449 projects. The EBRD’s activity is currently fully dedicated to helping the economies where it invests, and private sector companies, to overcome the impact of the ongoing coronavirus pandemic.