Two banks bankroll Titan project in Albania

TIRANA, Nov 22 – Greek cement producer Titan announced last week that two international banks were going to participate in its operation in Albania in the forms of debt and equity funding.
The European Bank for Reconstruction and Development (EBRD) and the World Bank’s International Finance Corporation (IFC) will put 58.8 million Euros into Titan’s Albanian subsidiary, Antea Cement.
The EBRD and the IFC will each take 20 percent stake in the subsidiary for 12.6 million Euros, and extend Titan a loan of 16.8million Euros respectively.
Titan is investing 170 million Euros in the new plant, located in the north of the capital Tirana. It will have 1.5 million tons of production capacity and is expected to be completed by the end of 2009.
In one of the largest foreign direct investments in Albania, the EBRD gave 29.4 million Euros in a debt and equity financing to Antea Cement to construct and operate a new plant north of the capital Tirana.
The Bank’s finance will consist of a 12.6 million in equity for a 20 percent stake in the company and a loan of 16.8 million.
The International Finance Corporation (IFC) will provide a parallel equity investment and a loan of the same amounts.
Antea Cement will use the EBRD finance to construct a cement plant north of Tirana with a capacity of 1.5 million tonnes of blended cement. The output is mainly intended for the Albanian market, with the possibility of part of it being exported to Montenegro and Kosova.
The new cement plant will directly result in the creation of 300 jobs, and an additional 500 jobs indirectly.
“By supporting the largest greenfield investment in Albania by an experienced international cement producer, the EBRD is not only helping to improve competition and quality of standards in the cement and the construction sectors, but is also supporting the economy as a whole. One of the big challenges for Albania is to attract foreign investment, and this project should clearly demonstrate to investors the possibilities of working successfully in Albania,” Claudio Viezzoli, EBRD Director for the Western Balkans, said.
A leading exporter in cement, Titan Cement has plants in countries around the world and a large trading network in southeastern Europe. Titan’s total production capacity is around 16 million tonnes per year.
The EBRD is the largest institutional investor in Albania, having invested more than 400 million Euros in a number of important sectors, including national infrastructure, the financial sector and the private corporate sector.
“IFC is pleased to support Titan’s large investment in Albania and contribute to enhance competition and environmental standards in an industry, which is critical to the development of the country’s infrastructure and housing sectors,” said Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services. “The project will send a strong signal to other private investors in the country and the region.”