Metalloinvest signs new credit facility agreements
Metalloinvest (“the Company”), a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel, has signed two long-term credit facility agreements with ING Bank guaranteed by export credit agencies (ECA). The funds will be used to purchase equipment for the implementation of investment projects at Ural Steel (part of Metalloinvest).
One of the agreements, a EUR 11.5 mn ten-year credit line guaranteed by Euler Hermes Aktiengesellschaft (Germany), will be used for the construction of the Roller Treatment Furnace #1 and Heat Treatment Machine #1 Сomplex. LOI Thermprocess has been awarded the equipment supply contract.
Metalloinvest also agreed a EUR 5.2 mn eight-year credit facility, guaranteed by SERV Schweizerische Exportrisikoversicherung (Switzerland), to finance the modernisation of Ural Steel's four-strand continuous casting machine (CCM #1). SMS Concast AG is producing and supplying the new equipment.
The Company is modernising its facilities to improve the quality of its rolled steel products and increase the proportion of high value-added products in its portfolio. Credit facilities guaranteed by export credit agencies are typically one of the most effective sources of funds in terms of interest rate and tenor.
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