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Sopron Bank lends GYSEV HUF 1bn to build HUF 1.5bn warehouse

Sopron Bank, owned by Austria's Bank Burgenland, a member of the Grawe insurance group, has signed a contract to lend GYSEV, a regional railway owned by the states of Hungary and Austria, HUF 1 billion to build a HUF 1.5 billion warehouse in Sopron, the parties said in a joint statement on Thursday.

The loan is euro-based and has a run of ten years, Sopron Bank said when asked by MTI. The bank is also pre-financing the HUF 500 million grant.

European Union and state development grants will cover HUF 500 million of the cost of the 6,600-square-meter warehouse.

Construction of the warehouse will start in the autumn. When it is completed in the spring of 2010, GYSEV's warehouse capacity will rise to 28,000 square meters. (MTI-Econews)