BCR increased the existing facilities for TMK Artrom

TMK ARTROM SA, part of European Division of TMK, one of the world’s leading oil and gas steel pipe suppliers, signed 5 year EUR 20 million loan agreement with Banca Comerciala Romana, member of Erste Group Bank AG, said the bank in a statement.rnrnThe term loan of EUR 20 million is secured with Corporate Guarantee issued by mother company OAO TMK and is aimed at improving the current debt structure of SC TMK ARTROM SA in line with strategic restructuring of credit portfolio. rnrnBCR has also increased the existing facilities available for SC TMK ARTROM SA: the overdraft facility from EUR 18.4 million to EUR 20 million, up to 3 years tenor, and the discounting line for promissory notes from RON 5 million to RON 10 million, 1 year tenor. rnrnIn addition to the above, BCR provided a new treasury line of EUR 3 million, 3 years tenor, for the purposes of interest rate and FX risk hedging.rnrn“We have a long-term cooperation with BCR. In 2005 we received a four year investment loan of 23.7 million Euro aimed at construction and launching the modern pipe hot-rolling mill in TMK ARTROM. Thus we have strengthened our positions in the European market and almost doubled our production capacities. With these new facilities we continue our long-term cooperation with the bank bringing it to the new strategic level”, said Adrian Popescu, CEO of TMK European Division.rnrn“ARTROM, now part of TMK Group, has been one of BCR’s core clients for more than 20 years and our intention is to further strengthen the relationship – this is proved by the fact that we are increasing our exposure towards TMK even in a difficult economic and financial environment”, stated Diana Hudymač – Executive Director of Group Large Corporate Division within BCR.