Cersanit secures €42m loan from EBRD to invest in Polish and Ukrainian operations

Cersanit secures €42m loan from EBRD to invest in Polish and Ukrainian operations

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) is providing €42 million in long-term funding to Cersanit SA, a leading Polish ceramic tile and bathroom equipment manufacturer with a significant presence in Ukraine. The financing will enable Cersanit to complete multiple investments in Poland and Ukraine, including scaling up tile and sanitaryware production in Ukraine, reconstructing an acrylics products factory in Poland, and implementing energy efficiency upgrades and modernisation investments in Poland. The investment will help the reconstruction of Ukraine’s infrastructure damaged by war and facilitate Cersanit’s expansion in European Union markets. The EBRD has been a long-time supporter of Cersanit, providing €122.2 million in financing to date.

(PRESS RELEASE) LONDON, 18-Apr-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, has announced €42 million in long-term funding to Cersanit SA, a leading ceramic tile and bathroom equipment manufacturer in Poland with a significant operation in Ukraine. The loan will allow the company to manage its working capital needs and complete several investments in both Poland and Ukraine, including scaling up tile and sanitaryware production in Ukraine, reconstructing an acrylics products factory in Poland, and upgrading energy efficiency and other modernisation investments in Poland.

The EBRD has been offering significant support to Ukraine and its neighbouring countries since Russia’s invasion last year. The Bank launched a Resilience and Livelihoods Framework in early 2022 to provide finance to mitigate the war’s impact on Ukraine and neighbouring states, including Poland, and has pledged to invest a record €3 billion in Ukraine by the end of 2023. In 2022, the EBRD deployed €1.7 billion in Ukraine, along with €200 million mobilised from partner financial institutions. The Bank also had a record year in Poland, with total investment of €990 million in 2022.

Cersanit’s Ukrainian subsidiary, Cersanit Invest LLC, had to temporarily halt production due to the war in Ukraine, which also prompted the company to dispose of its assets in Russia, accounting for nearly one-fifth of the group’s total sales. Cersanit’s Polish operations were also impacted by a fire outbreak that destroyed its acrylic products factory. The EBRD’s investment will aid the company in the reconstruction of infrastructure damaged by war, especially as ceramic tiles, sanitary ware, and bathroom equipment are essential building materials that will be used in the process.

“This investment not only helps the economies of both countries by supporting a vibrant company producing goods locally that will be an essential component in Ukraine’s reconstruction, it also preserves human capital by maintaining essential jobs. The EBRD remains committed to financing other investments in Ukraine and neighbouring states affected by the war,” said EBRD Vice President Alain Pilloux, who signed the loan agreement in Warsaw.

“Despite a very challenging environment caused by the outbreak of war and increased energy prices, Cersanit has proved to be resilient and adaptive to the new economic reality. We remain committed to expanding our activities in Ukraine through continued production of ceramic tiles and sanitaryware. I want to thank all Cersanit’s staff for their commitment, dedication and empathy. I also firmly believe that other European and global businesses will follow our footsteps and consider investing in Ukraine as well,” said Cersanit’s owner Michal Solowow. 

Reconstructing the damaged infrastructure in Ukraine is expected to cost hundreds of billions of dollars. The use of essential building materials such as ceramic tiles, sanitary ware, and bathroom equipment will be crucial in repairing damaged residential property, industrial assets, and social infrastructure such as schools, kindergartens, hospitals, and public service buildings that provide vital services.

Apart from its contribution to the infrastructure repair, the project will facilitate the growth of a dynamic Polish company in other European countries. Following the closure of its operations in Russia, Cersanit SA plans to expand and strengthen its presence in the European Union markets, leveraging its strong export sales and established position in European markets.

The EBRD and Cersanit have a longstanding relationship that dates back to 2006, when the EBRD began supporting Cersanit’s international expansion. To date, the EBRD has provided €122.2 million in financing to the Cersanit Group through bilateral loans and A/B loans, which mobilised the participation of commercial banks.

Media contact:

Tel: +44 207 338 7805
Email: press@ebrd.com

SOURCE: EBRD