USAID Business Finance

Borrower:

Alumina

City:

Zivinice

Type of Business:

Manufacture of aluminum window frames, doorframes, and storefronts.

Loan Amount:

380,000 DM

Use of Proceeds:

250,000  Equipment
  80,000  Building expansion
  50,000  Working capital

Interest Rate:

DM Libor + 4.0%

Term:

36 Months

Grace Period:

3 months – principal only

Guarantor:

Smajlovic Samed

Collateral:

First Mortgage on factory (land & building) and personal residence

Agent Bank:

Komercijalana Banka, DD Tuzla

Environmental Review:

Passed

Industry Sector:

Aluminum window & door frame manufacturing

Ownership Structure:

100% Private

Employment Impact:

50 New employees

Transaction Synopsis:

Founded by Smajlovic Samed in 1986, Alumina is a private company that manufactures aluminum window and doorframes.  In addition, they design and build kiosks used by small street vendors.  The company is a small enterprise that Mr. Samed began in his garage.  Over the years he has steadily  increased his production and workshop capacity.

Aluminum is an attractive, strong, and maintenance free product for the construction of window frames, doorframes, and entire storefronts.  It is a cost competitive alternative to wood or PVC type products.  Alumina primarily serves the commercial market, however their products are also applicable to home construction.  All sales are domestic and therefore in support of the reconstruction effort of BiH.

Mr. Samed is the founder of the company and has been in the aluminum carpentry business for 19 years.  His business relationships are strong and have been built on service, quality, and durability.  Mr. Samed has also earned an reputation for his excellent craftsmanship.

This loan will allow the company to expand its production capacity, specifically, to expand the shop facility, add new production equipment, and provide working capital for raw material.  As a result of this loan 50 new full-time positions will be created.  New employment will be implemented within 30 days of the equipment installation.

Recommend by:   Roger Bird                                                                                                                                   1/21/97