Sep 19, 2005. /Lesprom Network/. The European Bank for Reconstruction and Development planned an up to Euro 28 million ($34.2 million) partially syndicated loan to back the development of Bulgarian pulp mill Sviloza. The loan will go to co-finance a Euro 50 million project at Sviloza, which will allow the company raise output and improve energy efficiency, EBRD said in a statement. The proposed project will enable Sviloza to increase its production capacity, and to comply with the forthcoming EU environmental standards, EBRD said. Bulgaria hopes to join the EU in 2007. The loan is pending approval by the EBRD board on October 26. Sviloza, based in the northern Bulgarian town of Svishtov, is the country's sole sulphate bleached hardwood pulp manufacturer. It exports 92% of its production, mainly to the European Union countries, South Korea, Mexico and Japan. The company posted a 2.23 million levs ($1.39 million/Euro 1.14 million) net profit in the first six months of 2005, versus a 1.8 million levs loss in the same period last year. Its revenue fell by a tiny 0.69% to 39.661 million levs. Sviloza finished at 2.57 levs on the stock exchange in Sofia on August 24, when it last traded.