Equity
Hungary BorsodChem approved for EUR 70mn Eximbank credit line (2)
Eximbank attracted funding with a USD 500 million bond issue last December, Varga reminded. "A large part of that is still available, and we expect a pipeline of similar financing deals in the near future," he added, referring to the possibility of lending to other exporters.
The agreement with BorsodChem has been the largest credit agreement with the purpose of promoting Hungarian exports recently, according to Varga. Chinese investor Wanhua, which acquired BorsodChem in 2011, is a leading supplier of chemical products both in Asia and in Europe, the minister reminded, noting that the company sees an opportunity to increase sales in Europe as well as increase exports to Asia or other continents.
At EUR 60 billion, major part of BorsodChem's EUR 80 billion export went to EU countries, with only EUR 10 billion worth of products supplied to other European countries, plus a further EUR 10 billion outside of Europe, Varga said. "We would like to create a more balanced export structure in the future," he added.
The government and Eximbank are looking for partners with a potential to export not only to Europe but also to other continents, and ready to involve Hungarian SMEs as suppliers to support increasing exports. SMEs in Hungary contribute only 11% of the country's exports, the Economy Minister pointed out.
The agreement with BorsodChem has been the largest credit agreement with the purpose of promoting Hungarian exports recently, according to Varga. Chinese investor Wanhua, which acquired BorsodChem in 2011, is a leading supplier of chemical products both in Asia and in Europe, the minister reminded, noting that the company sees an opportunity to increase sales in Europe as well as increase exports to Asia or other continents.
At EUR 60 billion, major part of BorsodChem's EUR 80 billion export went to EU countries, with only EUR 10 billion worth of products supplied to other European countries, plus a further EUR 10 billion outside of Europe, Varga said. "We would like to create a more balanced export structure in the future," he added.
The government and Eximbank are looking for partners with a potential to export not only to Europe but also to other continents, and ready to involve Hungarian SMEs as suppliers to support increasing exports. SMEs in Hungary contribute only 11% of the country's exports, the Economy Minister pointed out.
