Spartan UK, rolling plant of the Dutch mining and metallurgical holding Metinvest B.V. (Metinvest) in Newcastle, UK, has attracted a new £ 35 million irrevocable factoring line.
According to the press service of Metinvest, the line was organized jointly with Raiffeisen Bank International AG (“RBI”) and will allow Spartan UK to carry out regular sales of trade receivables without recourse. All receivables will be governed by English law and insured by Tokio Marine HCC. The line will be open on an irrevocable basis with a renewable period of 364 days.
Commenting on the deal, Yuri Ryzhenkov, CEO of Metinvest Group, said:
- Customer focus has always been one of the strategic priorities for the Group. We are constantly working to improve the products and services we provide to make our value proposition even more attractive. This line will allow us to provide our clients with even more flexibility by offering different terms of sales and financing.
Alexander Lyubarev, Director of the Financial Management Department, Metinvest Group:
- In the current uncertain environment, irrevocable instruments have grown in importance as they provide a stable source of financing for working capital. This is the first such line for Spartan UK, and we are delighted that our partnership with RBI is developing successfully in new regions.
Spartan UK, based in Newcastle upon Tyne in the North East of England, can produce 200,000 tonnes of high quality carbon steel sheets per year. As part of the vertically integrated Metinvest group of companies, most of the heavy plate is produced from slabs supplied by Metinvest's Azovstal Metallurgical Plant.