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MFB injects Ft 380 mln in environmental company Organica

The Hungarian Development Bank (MFB) has obtained a 49% share of environmental company Organica Környezettechnológiák, formerly called
Korte-Organica, with a Ft 380 million capital injection, MFB announced on
Monday. MFB expects to pull out of the company after five years. Organica will put Ft 175 million of the fresh cash into registered capital, raising it to Ft 356 million, and the rest will go into reserves, Organica head István Kenyeres told the press. Kenyeres said the capital would allow Organica to finance Central East European developments more easily. Organica expects revenue of Ft 2 billion this year, Ft 100 million less than in 2004, Kenyeres said, putting down the decline to a pre-election mood of moderation. He added, however, that already started projects to be completed next year and investments made with the fresh capital should boost revenue 25% in 2006, although profits will still remain minimal this year and next. Designing and building environmentally-friendly industrial and residential waste water treatment plants generates 50% of Korte-Organica's revenue, operating the facilities accounts for another 30% and environmental remediation projects account for the rest.
Roughly 10% of Korte-Organica's revenue comes from projects outside of Hungary, but foreign revenue should increase to exceed 50% in the coming years with a rise in the number of regional developments, Kenyeres said. Beside MFB, the company's owners include Hungarian and foreign private investors.