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Metinvest closes its first securitization deal

Ukraine / Europe

Metinvest Group, an international vertically integrated group of mining and metals companies, has successfully launched a new program of securitization of accounts receivable for its Italian rolling mills, Metinvest Trametal and Ferriera Valsider, worth 75 million euros.

Metinvest closes its first securitization deal

Securitization is part of the Group's financing strategy aimed at strengthening the debt portfolio with instruments that improve creditworthiness, reduce borrowing costs and create an optimal basis for attracting long-term working capital financing.

As part of the securitization, Metinvest Trametal and Ferriera Valsider will sell portfolios of trade receivables to a special project company (SPV) on a revolving basis. The acquisition of receivables will be financed through the issuance of partially paid bonds in the amount of € 75 million with floating interest rates, secured by the acquired receivables.

The subscription for the bonds will be carried out by Coöperatieve Rabobank U.A. (Netherlands) through its asset-backed commercial paper company Nieuw Amsterdam Receivables Corporation B.V. Finacity Corporation (USA), as the organizer of the transaction, provided initial and analytical support, assistance in structuring, and will also act as a permanent administrator of the program, providing certain reporting. Centotrenta Servicing S.p.A. will be responsible for certain monitoring and reporting services, compliance of the transaction with applicable laws and the prospectus, and administrative, accounting and tax support of the SPV.

Finacity Corporation is part of the Greensill group of companies, which specializes in structuring and facilitating receivable capital financing programs, vendor and payables financing programs, and program support and administration. Finacity Corporation currently provides financing and administration of receivables worth approximately US $ 100 billion in annual terms. With a presence in the United States, Europe and Latin America, Finacity Corporation works with issuers and debtors in 175 countries around the world.

Allen & Overy advised Metinvest Trametal and Ferriera Valsider on all legal aspects of this transaction. Gattai, Minoli, Agostinelli & Partners was hired as legal advisor to Coöperatieve Rabobank U.A. (Netherlands).

Yuri Ryzhenkov, General Director of Metinvest Group:

- This landmark transaction is part of our broader strategy to expand our client base and provide additional, more flexible sales finance solutions in Europe. Securitization will also allow interaction with new financial institutions that express their willingness to participate in the transaction and provide additional liquidity to the Group. I would like to thank Rabobank for its long-term support of Metinvest Group and welcome Finacity Corporation as a new and important partner for us.

Adrian Katz, President, Finacity Corporation:

- This transaction marks our second successful closing of a trade receivable securitization transaction in Italy in the past year. We are very pleased to start this partnership with Metinvest Group not only because of our role in this transaction, but also hope to expand the relationship between our two firms.

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