Obuhiv Autoclaved Aerated Concrete Block Plant

The chief executive officer of a large concrete block manufacturing facility is preparing a report for the board of directors meeting. The plant is looking at expanding its production capacities and the chief executive officer must determine the size of the expansion and the sources of financing. The company has been experiencing an excessive demand for its product and the expansion seems like the next step. The financial sources, like in many emerging markets, were substantially limited, five options needed to be considered: a commercial loan, a government guaranteed loan, a loan from the European Bank of Reconstruction and Development, a corporate bond issue and internal financing.