ALRO secures US$260m working-capital refinancing from six banks

Romanian aluminium producer ALRO has secured a US$260m syndicated credit facility from six banks, refinancing existing debt and providing revolving working-capital capacity as European metals manufacturers continue to face elevated energy costs and difficult operating conditions.

Banca Comercială Română has coordinated the transaction, acting as mandated lead arranger, bookrunner, documentation agent, facility and security agent, issuing bank and lender.

The banking syndicate also includes Exim Banca Românească, CEC Bank, Banca Transilvania, Raiffeisen Bank and Intesa Sanpaolo Bank România.

The financing comprises revolving credit facilities with a three-year term, allowing ALRO to refinance existing obligations while maintaining access to funding for ongoing operational requirements.

ALRO is one of Europe’s largest vertically integrated aluminium producers, supplying products used in transport, construction, energy infrastructure and other industrial applications.

Its financing requirements reflect the working-capital intensity of aluminium production, where expenditure on energy, raw materials and industrial processing must be funded before finished products are sold and customer payments are received.

For a major producer, revolving finance can provide flexibility in managing these expenditure cycles, particularly when energy costs and input prices fluctuate.

The new agreement also gives ALRO access to a diversified group of lenders rather than relying on a single banking relationship.

Marian Năstase, chairman of ALRO’s board, said the facility strengthened the company’s financial position at an important moment for the business and supported its focus on higher-value products, operational efficiency and investment.

The transaction is significant because European aluminium producers have faced persistent pressure from energy costs, industrial competitiveness concerns and the financing requirements associated with modernising production facilities.

For ALRO, refinancing existing debt and maintaining committed revolving credit capacity can help manage near-term operating requirements while preserving flexibility for its longer-term industrial strategy.

The agreement also demonstrates continued bank support for an industrial exporter whose activities are closely connected to European manufacturing supply chains.

Nestor Nestor Diculescu Kingston Petersen and White & Case advised the banking syndicate, while Zamfirescu Racoți Vasile & Partners and Simmons & Simmons advised ALRO.

The announcement does not provide the individual banks’ commitments, interest margins, borrowing-base requirements or the amount initially drawn.

The US$260m figure represents the syndicated facility amount and should not be interpreted as entirely new cash advanced to the company, since part of the financing will replace existing debt.