Sofia Med, a leading global producer of copper and copper-alloy rolled and extruded products and part of the copper segment of ElvalHalcor, has signed a senior secured loan agreement of up to EUR20 million with the European Bank for Reconstruction and Development (EBRD). The transaction is expected to benefit from support under the InvestEU Fund and forms part of Sofia Med’s broader strategy to enhance operational performance, sustainability and long-term competitiveness.
The five-year loan, which includes semi-annual repayments and a one-year grace period, will be used for general corporate investment purposes, primarily targeting capital expenditure for strategic manufacturing equipment, operational upgrades, environmental protection measures and ongoing maintenance at the company’s existing production facilities. The total project cost amounts to EUR 43.7 million.
A key feature of the transaction is its sustainability-linked structure. Loan pricing is partially linked to the achievement of measurable sustainability KPIs aligned with circular economy objectives, including increased use of secondary raw materials and enhanced water efficiency. This mechanism directly incentivises improved environmental performance while embedding sustainability considerations into Sofia Med’s financing framework.
This transaction provides several layers of added value.
- First, it enhances funding diversification and balance-sheet resilience through long-tenor, competitively priced development finance.
- Second, it strengthens Sofia Med’s sustainability credentials via externally validated sustainability targets and reporting requirements.
- Third, it demonstrates the company’s ability to translate sustainability commitments into measurable operational outcomes, reinforcing credibility with regulators, customers, and capital markets.
The project achieved a Transition Impact score of 60 under EBRD methodology, reflecting strong “green quality” attributes. It qualifies for a 100% Green Economy Transition (GET) share, highlighting Sofia Med’s contribution to circular economy practices and resource efficiency in copper fabrication.
Environmental and social due diligence classified the project as Category B, confirming limited and manageable risks. Sofia Med was found to be in good standing with EBRD Environmental and Social Performance Requirements, supported by established health and safety systems, environmental controls, sustainability governance structures and community engagement initiatives. Remaining action items from previous transactions remain on track and have been incorporated into the current Environmental and Social Action Plan.
In addition, EBRD will provide technical cooperation support to assess and plan upgrades to Sofia Med’s wastewater treatment infrastructure, ensuring alignment with future production needs and environmental targets.
Overall, the transaction underscores Sofia Med’s strategic alignment with sustainable finance, disciplined capital allocation and long-term value creation, while positioning the company to benefit from structural growth trends in low-carbon and circular metals value chains.