Slovnaft, the Slovakian oil refining company, has secured a €200mn syndicated loan from eight banks.

Československá Obchodná Banka acted as co-ordinating bank, with UniCredit the facility agent. The rest of the participating banks are Česká Spořitelna, HSBC, Slovenská Sporiteľňa, Tatra Banka and Všeobecná Úverová Banka.

The finance will be used to fund future investments in the company’s plastics division, after it spent more than €200mn on a new polyethylene plant in 2013. The investment will also include smaller oil-processing projects. The facility can also be used by subsidiaries of the company.

CEO Oszkár Világi says: “We appreciate the confidence given by the banks to have entered into this lending agreement with Slovnaft to such a significant extent. At a time when Europe’s refining industry in Europe is feeling the impact from the decline in consumption of petroleum products and growing competitive pressure, investment in development and the ability to produce cost effectively are key to all companies in the sector operating successfully.”