EBRD support for largest greenfield investment in Albania

EBRD support for largest greenfield investment in Albania
Published: 24 November 2008

In one of the largest foreign direct investments in Albania, the EBRD is extending EUR29.4m in a debt and equity financing to Antea Cement to construct and operate a new plant north of the capital Tirana.

Antea Cement is a subsidiary of the Greek cement manufacturer Titan Cement.

The Bank’ finance will consist of a EUR12.6 million in equity for a 20 per cent stake in the company and a loan of EUR16.8m. 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 Kosovo.

The new cement plant will help meet the country’ increasing demand for cement, about half of which is currently met through imports. Cement exports by Antea would help to strengthen commercial links with neighbouring countries.

‘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,’laudio 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’ total production capacity is around 16Mta.

The EBRD is the largest institutional investor in Albania, having invested more than EUR400m in a number of important sectors, including national infrastructure, the financial sector and the private corporate sector.