Apollo Tyres closes million financing for its plant in Hungary

Wednesday, Aug 26, 2015,20:34 IST By metrovaartha A A A

Kochi | Apollo Tyres Ltd,  leading tyre company in India, has announced that it had successfully closed a 300 million dollars financing for its Greenfield plant in Hungary.
An international consortium of banks consisting of ABN AMRO Bank N.V., Magyar Export-Import Bank Zrt., Raiffeisen Bank Zrt., Standard Chartered Bank and UniCredit Bank Hungary Zrt. supported the company and provided the debt financing, a release from Apollo tyres said here today.
ABN AMRO Bank N.V. acted as Documentation Agent on the facility and Raiffeisen Bank Zrt. was the Facility and Security Agent, it said adding that with a total investment of $475 million, the construction of the Greenfield plant began in April 2015.
The first product was expected to roll out in early 2017 and the facility woulld create approx 1,000 jobs in the country.
Commenting on the closure of the financing, Apollo Tyres Hungary Managing Director K Prabhakar said, ‘we thank our consortium partners who provided appropriate solutions to the specific financing needs for the project and facilitated a smooth execution.’
The Hungary facility would be a state-of-the-art plant, and once completed, would have a capacity to produce million passenger 5.5 car and light truck (PCLT) tyres and 675,000 heavy commercial vehicle (HCV) tyres per annum, it claimed.
Stating that this facility would complement Apollo Tyres’ existing facility in the Netherlands, bringing the whole range of Apollo and Vredestein branded tyres to the European market, it said this upcoming plant is located less than 100 km from Budapest (capital city of Hungary) and meets the needs of Apollo Tyres, including having close proximity to various OE manufacturers as potential customers.