Turkish bank Garanti BBVA provides a €7.5 million loan to Romania's foremost paper tissue manufacturer to facilitate eco-friendly expansion
In a significant move towards promoting sustainability and local economic development, Garanti BBVA Romania has granted a loan of EUR 7.5 million to MG Tec Industry SRL, a leading Romanian producer of paper tissues. The loan, backed by a state guarantee from Exim Banca Românească, is set to bolster the growth of this domestic enterprise.
The financing facility, divided into three phases, is designed to manufacture a variety of products, including jumbo rolls of paper, industrial rolls, medical rolls, dispenser napkins, and personal hygiene products. MG Tec Industry's commitment to sustainability is evident in its focus on recycling practices in its production processes.
"We are delighted to support MG Tec Industry in its growth journey," said Bilge Demirer, Deputy General Manager, Enterprise Banking Area, Garanti BBVA. "Our bank continues to support the development of the local economy, and this loan is a testament to our commitment."
The loan holds significant importance for several reasons. Firstly, it supports local industry growth. Access to substantial financing enables MG Tec Industry to expand operations, increase production capacity, or invest in new technologies. This growth can stimulate job creation and boost the local economy.
Secondly, the involvement of Exim Banca Românească with a state guarantee reduces financial risk for the lender, encouraging funds to flow to domestic enterprises that might otherwise face difficulties accessing credit. This mechanism helps channel investments towards companies that contribute to national economic goals.
Thirdly, the loan aligns with sustainability objectives, as it can enable MG Tec Industry to upgrade equipment, adopt cleaner production methods, or develop sustainable products. PCF Investment Banking, which acted as the exclusive advisor to MG Tec Industry in structuring, negotiating, and implementing the financing transaction, echoed this sentiment.
Fourthly, by investing in innovation and modernization, MG Tec Industry can enhance its competitiveness in domestic and global markets. Sustainable innovation often opens new market opportunities, supporting long-term economic resilience.
Lastly, such financing deals can set positive precedents, encouraging other companies and banks to pursue sustainable development projects, thus amplifying the impact on local economies.
Since 2019, MG Tec Industry has invested over EUR 120 million in a state-of-the-art production facility in Romania, spanning 65,000 sqm. Mihai Iordan, Managing Partner of PCF Investment Banking, expressed satisfaction with the transaction that provides a working capital line to MG Tec Industry.
Exim Banca Românească encourages other commercial banks to follow the model set by Garanti BBVA in supporting local businesses. Garanti BBVA Romania's growth strategy prioritizes integrating ESG principles into business decisions to ensure long-term value creation and responsible development. The bank is dedicated to using its resources and expertise to help customers achieve sustainability, offering tailored financial solutions and personalized products.
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