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Metinvest Attracts Longest-Ever ECA Covered Financing

Steel News - Published on Thu, 16 Jan 2020

Image Source: steelguru.com
Metinvest has attracted a buyer’s credit facility of EUR 24.4 million for up to 11 years for its subsidiary Ilyich Steel, a steelmaking plant in Mariupol, Ukraine. The facility is covered by an export guarantee of the Republic of France issued by Bpifrance Assurance Export, which acted as the export credit agency. It was granted by Raiffeisen Bank International, which was the sole lender. The interest rate on the facility, which matures in July 2030, has been set at the six-month EURIBOR plus margin. The funds will be used to finance the construction at Ilyich Steel of an air separation unit and vaporisation station. The equipment and engineering services will be procured from Air Liquide Global E&C Solutions France, a global leader in manufacturing and supplying gases, an agreement with which was signed in June 2019. Metinvest Engineering, which executes Metinvest’s investment projects from planning to implementation, is acting as the general contractor of the project.

Metinvest’s financing strategy envisages using ECA-covered facilities as one instrument to fund its Technological Strategy 2030. In 2018-19, the Group has successfully arranged three such facilities from leading financial institutions guaranteed by European export credit agencies totalling more than EUR100 million.

The project aims to replace the existing technologically obsolete oxygen units to ensure that Ilyich Steel’s future demand for air separation products continues to be met as steel production capacity is expanded as part of the Technological Strategy 2030. Total investment in the construction of the facility will amount to around US$78 million. The new air separation and vaporisation unit will have a production capacity of 25,000 normal cubic metres per hour of gaseous oxygen, 1,750 normal cubic metres per hour of liquid oxygen and 35,000 normal cubic metres per hour of gaseous nitrogen, as well as a liquid oxygen storage and gasification station.

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Posted By : Rabi Wangkhem on Thu, 16 Jan 2020
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