Business News

IFC to Take Part in Gorenje Capital Raising

Velenje, 20 April (STA) - The International Finance Corporation (IFC) will take part in a capital increase at household appliance maker Gorenje designed to improve competitiveness and restructure credit due in the next two years, the company said Monday.

The company did not reveal how much the IFC, which operates under the auspices of the World Bank, is willing to spend on Gorenje. But Daily Dnevnik reports today that the IFC would invest EUR 30m and organise a syndicate providing a EUR 150m loan.

According to Dnevnik, the sum mulled by the IFC is EUR 20m less than the Gorenje management had been hoping for. It quotes unnamed sources saying that the remaining money would be raised in a second or perhaps even third round of equity financing.

The company is expected to reveal the details of the capital raising on Thursday, Dnevnik reports.

Gorenje had financial liabilities to the tune of EUR 500m at the end of last year and capital worth EUR 400m.

It ended 2009 with a EUR 12.2m net loss on group sales that were down 11% over a year before to EUR 1.2bn.

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