Apollo Tyres Ltd, a leading tyre company, announced that it has successfully closed a €300 million 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. ABN AMRO Bank N.V. acted as Documentation Agent on the facility and Raiffeisen Bank Zrt. was the Facility and Security Agent.
With a total investment of €475 million, the construction of the Greenfield plant began in April 2015. The first product is expected to roll out in early 2017 and the facility will create approx 1,000 jobs in the country.
Commenting on the closure of the financing, K Prabhakar, Managing Director, Apollo Tyres Hungary 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 will be a state-of-the-art plant, and once completed, will have a capacity to produce 5.5 million passenger car & light truck (PCLT) tyres and 675,000 heavy commercial vehicle (HCV) tyres per annum. This facility will complement Apollo Tyres’ existing facility in the Netherlands, bringing the whole range of Apollo and Vredestein branded tyres to the European market. 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.