LONG TERM CLUB LOAN AGREEMENT SIGNED TO REFINANCE PART OF AGROKOR'S SHORT TERM LIABILITIES
Nov 20, 2005
A Long-Term Club Loan Agreement was signed today at the Agrokor offices to refinance part of Agrokor's short-term liabilities. The Agreement was signed by Mr. Ivica Todorić, President of the Agrokor Group, Mr. Božo Prka, President of the Management Board of Privredna Banka Zagreb, Mr. Hans Kosak, Senior Director at Bank Austria Creditanstalt, Mr. Goran Gazivoda, Deputy President of the Management Board of HVB Splitska Banka and Mr. Igor Kodžoman, Member of the Management Board of Hypo-Alpe-Adria- Bank. Upon completion of a comprehensive analysis Agrokor decided to accept the offer of HVB Splitska Banka and Bank Austria Creditanstalt, with Privredna Banka Zagreb and Hypo Alpe-Adria-Bank joining their financing model. The above financial institutions provided a long-term club loan facility in the amount of EUR 75m which will be used to refinance part of Agrokor's short-term liabilities based on its excellent results in 2005 and its medium-term plans. This financing shall enable the further development of Agrokor and an additional strengthening of its financial position and represents part of the activities within the scope of a financial restructuring model to be completed in 2007. The club loan facility enables the continuity of planned investments and the improvement of the current balance sheet position. By signing this Agreement HVB Splitska Banka, Bank Austria Creditanstalt, Privredna Banka Zagreb and Hypo Alpe-Adria-Bank, member banks of the Club, confirmed their long-standing cooperation with Agrokor, one of the largest regional companies, and support its business policy.