Gorenje and VTB Bank sign a loan agreement

Gorenje and VTB Bank (Austria) AG signed an agreement on a five-year long-term loan in the amount of EUR 72 million, which will be used to refinance Gorenje's current debt and, in turn, improve the maturity profile of the Group's financial resources and its financial stability.

Gorenje signed the loan agreement with the Austrian subsidiary of Russian VTB Bank. VTB Bank (Austria) AG is a traditional commercial bank with EUR 10.3 billion in consolidated total assets and EUR 1.37 billion in eligible own funds. The bank specialises in the financing of trade transactions and projects in Russia and the CIS countries as well as in services in the areas of payment transactions and investments. It is one of the largest foreign banks operating in Austria.

In addition to the improvement in the maturity profile, this is a further Gorenje activity aimed at cutting its overall debt. The target for this year is to deleverage by EUR 25 million. With planned EBITDA of EUR 93.7 million, the net financial debt to EBITDA ratio is anticipated to be cut to 3.6 by the end of this year, and to 3.0 by the end of 2015.

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