UTI gets 68 million euros from Raiffeisen to expand its business

The UTI group, whose business includes construction, security and IT operations, and is held by businessman Tiberiu Urdareanu and US-based fund AIG, took out a 68 million-euro loan from Austria's Raiffeisen Bank to finance ongoing contracts, investments and working capital. This loan that UTI got could be a first sign that banks are more open to granting loans to the private sector, after having been reluctant to do it in 2009.

UTI has already got a 28 million-euro tranche, with the rest of the money to be drawn as projects are carried out. "The global value of the cap is approved by Raiffeisen Vienna. We estimate the 28 million-euro cap for working capital will be operational in the first week of February, while the amount for structural financing and investments are taken as we get projects to fund," Tiberiu Urdareanu, chairman of the UTI group told ZF.

Out of the total, 25 million euros will go to fund the ongoing contracts, discount and factoring operations, 15 million euros will go to investments and 28 million euros, 24 million euros of which non-cash (letters of credit and letters of guarantee), will go to working capital.

UTI is one of the most important suppliers of information technology and security solutions on the local market, being known for the traffic management system in Bucharest that it created and for the introduction of the automated public transportation pass validation system used in Bucharest's public transportation.

Urdareanu anticipates turnover will reach 135 million euros this year if the worst-case scenario comes true, 13% higher compared with the previous year. In case the contracts for the foreign projects for which it bid are signed, the business could reach 160 million euros.