international vertically integrated group of mining and metals company "Metinvest" announced on Tuesday about opening credit line in the amount of 24.4 million euros for a period of up to 11 years to Finance the Mariupol metallurgical Ilyich iron and steel works (Ilyich steel).
Coverage of the credit line is carried out by French export guarantee issued by the export credit Agency (ECA) Export Bpifrance Assurance (Bpifrance). A single creditor is the Bank Raiffeisen Bank International. The interest rate on the credit line, the repayment period which begins in July 2030, fixed at the level of six-month EURIBOR rate plus a margin.
"I would like to thank the Agency Bpifrance, Raiffeisen Bank International and Air Liquide for their help in this project. For the first time in the history of Metinvest received funding with the longest maturities, is covered by an export guarantee from France. Despite the unfavourable forecast for the year 2020, it will enable the group to meet the growing needs of Ilyich steel in oxygen due to the expansion of steel production capacity", - said Yuriy Ryzhenkov, CEO of Metinvest group.
In Metinvest said that the funding will be used to Finance the construction of air separation unit and gasification plant at Ilyich steel. Supply of equipment and engineering solutions performs at Air Liquide, a world leader in the production and supply of gas agreement which was signed in June 2019. The General contractor for the project is the engineering company "Metinvest-Engineering", which implements the investment projects of the group from the strategic planning phase prior to implementation.
the Project includes replacement of outdated oxygen units to meet the demand Ilyich steel in air separation products as the expansion of production capacity in the framework of the Technological strategy – 2030. The amount of investment in the construction of the complex will be about 78 million dollars.
Power a new air separation unit and gasification plant will be 25 thousand cubic meters of oxygen, and 35 thousand cubic meters of nitrogen and 1.75 million cubic meters of liquid oxygen per hour. The complex infrastructure includes storage of liquid oxygen and a vaporizer.
the Construction of a new air separation unit will eliminate the risk of lower production due to the creation of a stock of liquid oxygen and installation of gasification. The conditions of work of employees, according to Metinvest, will meet the best European practices.
financing Strategy of Metinvest, which involves the use of lines of credit under the guarantee of ECA as one of the financing instruments of the Technology strategy – 2030. So, in 2018 or 2019 Metinvest has successfully attracted three lines of credit from leading financial institutions under the guarantee of European export credit agencies totaling more than 100 million euros.
