TMK | 16 April 2008 г. | 11:50

TMK and Societe Generale Group Sign Credit Agreement

TMK and Societe Generale Group Sign Credit Agreement
TMK announces that a credit agreement was signed between Seversky Tube Works (STW) and the Société Générale Group. The credit agreement of EUR 88.7 mln will partially finance STW’s acquisition of a Fine Quality Mill (FQM).

The agreement between TMK and Société Générale was proposed and approved by TMK shareholders on the December 25, 2007 Extraordinary General Meeting of Shareholders. The term of the loan is for 7 years at an annual interest rate of 5.11% and export credit insurance is provided by the SACE agency (Italy).
 
Payments under the transaction will be carried out by Yekaterinburg branch of Bank Société Générale Vostok.

This additional 600,000 tpa. capacity will enable STW to produce 168-365 mm hot-rolled seamless pipes with 6.28-37.3 mm wall thickness. Danieli, one of the world’s leading suppliers of equipment to the steel industry, will supply the FQM. Commissioning is scheduled for the second quarter of 2010.
Upgrading of Seversky’s pipe rolling equipment is carried out within the framework of TMK’s Strategic Investment Programme, aimed at reducing costs, expanding product mix, increasing the efficiency of production processes, and raising product quality.

“We are very satisfied with our agreement with Société Générale as we attracted advantageous financing for one of our key investment projects. 2008 is the peak year for the implementation of our Investment Programme and we are confident it will be carried out as scheduled”, said TMK CEO, Konstantin Semerikov.
 
Alexei Pavin, General Director of the Yekaterinburg branch of Bank Société Générale Vostok, commented, “Given our parent company’s resources and experience, we can successfully compete with the largest Russian and international banking groups operating in the Russian financial lending sector. Long-term and large-scale facilities are a priority for the Bank Société Générale Vostok.”
Source: Metal Supply and Sales
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