"Nutriko" starts production of fodder in Ratkovo - funds provided from EIB through Erste Bank

(Slavko Carić i Dragan Aleksić)

Erste Bank and company "Nutriko" signed the contract today (December 23, 2009) on investment loan from the funds of the European Investment Bank. In that way, "Nutriko" will become the first company to be paid the funds from Erste Bank's new and exceptionally favorable investment credit line.

"Nutriko", which produces fodder for all types of domestic animals, will use the money from the loan to start production in Ratkovo in Vojvodina. The funds will be invested in procurement of raw materials, construction of infrastructure, car scale, tampon cells for storing components, silo with the capacity of 2,500 tons, purchase and installation of equipment for fodder with the capacity of 10 t/h and organization of infrastructure on existing facilities.

- This investment will make it possible for us to get closer to the developed market and the raw material base in Vojvodina, as well as to expand the sales network to the countries of the region, primarily Croatia, Bosnia and Herzegovina, Hungary, Romania and Slovenia. One of the goals is to provide raw materials for our fodder factory in Vranje. We expect the business income in the first year to be increased by 30%. We plan to double total income within next five years - said Dragan Aleksić, the owner of company "Nutriko".

The amount of the loan is 750,000 EUR in RSD. It is granted on the period of seven years, in accordance with the needs of the project. Nominal interest rate amounts to 3M EURIBOR + 4.28% on annual basis. In addition to the Erste Bank's loan, "Nutriko" will also finance the investment from its own funds.

Erste Bank included this loan in its offer at the end of November 2009. The period of use of the loan is brought in accord with the deadline for realization of the investment, and maximum period for small and mid-sized enterprises is 12 years, that is, 15 years for the organs of the government administration. Maximum grace period is 4 years for SME and 5 years for the government organs. Maximum amount of the loan is 12.5m EUR, while the minimum amount is not defined. It is also possible to use the loan for refinancing of the existing investment loan.

Once the complete documentation is submitted, the bank processes and approves the loan within seven to ten days, and it takes two or three weeks from the moment the loan is granted by the banks for EIB to approve it and pay the funds.

- The basic advantages of this investment loan are much longer deadlines at much lower prices. Great interest is expressed by enterprises. In addition to company "Nutriko", with which we signed the first contract, we granted over 8m EUR worth of loans within the first two weeks from the moment we introduced the new loan, and that money will be paid to enterprises by the end of the week. The money is granted for 19 different projects. Most loans are granted to production companies - said Slavko Carić, the President of the Executive Board of Erste Bank, said on the occasion of signing of the first contract.