OREANDA-NEWS. The European Bank for Reconstruction and Development is providing an $8,8 million loan to Slobozhanska Budivelna Keramika (SBK), a leading facing and ceramic brick producer in Ukraine, reported the press-centre of  EBRD.

Loan proceeds will contribute to SBK’s investment programme, which envisages construction and launch of a greenfield plant for porous brick production blocks in Kiev region. It will also help to upgrade and expand the existing production lines at SBK plants located in the regions of Ukraine (cities of Kharkiv, Romny and Irpen).

This deal marks a successful continuation of the EBRD and SBK relationship following the acquisition of 12 per cent of SBK shares by the Bank, which was completed in April 2007. The Bank is planning to increase its stake in the company to 25 per cent plus one share by the end of 2007.

After the completion of the investment programme, partially funded by this transaction, SBK is expecting to nearly double its capacity to more than 250 million brick units per year by the end of 2009.

Slobozhanska Budivelna Keramika will achieve the highest EU environmental standards by introducing the latest environmentally sound technologies from leading European equipment producers and improving the environmental and energy efficiency standards of new buildings in Ukraine. In particular, SBK will start production of Poroton-type bricks - one of the most ecologically friendly modern walling materials.

It should also be mentioned that the transaction has the potential to increase consumer choice by expanding the range of available products. Finally a successful greenfield investment is likely to lead to the entry of other big players in the Ukrainian brick market.

According to SBK President Igor Dalichuk, EBRD’s participation in projects implementation not only as a shareholder of the company but also as a financial partner is SBK’s strategic achievement. This agreement will make a significant contribution to company’s long term objectives. It will help to double the existing output and introduce new products - clinker bricks and porous ceramic blocks – to realise complex construction solutions, he said. 

The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of the end January 2007 it had committed over ?2,87 billion through more than 130 projects.