Black Sea Trade and Development Bank and Metinvest Group, a vertically integrated group of mining and metallurgical companies, today announced the signing of a loan agreement worth 62 million euros to finance and refinance the purchase of machinery and equipment for its iron ore enterprises.
The seven-year line of credit provides a two-year grace period for repaying the principal.
Yuri Ryzhenkov, CEO of Metinvest Group:
- This news is the result of a large-scale work begun in July this year, and is an important milestone in our history, since this is the first loan from Metinvest Group from an international financial institution. We share the values of the Black Sea Trade and Development Bank. This line of credit will be aimed at improving the efficiency of our business, as well as increasing our overall contribution to improving the economic well-being of the Black Sea region.
Alexander Lyubarev, Director of Financial Management Department, Metinvest Group:
- Working with an international financial institution has become a new and very positive experience for Metinvest Group. I would like to express my gratitude to the team of the Black Sea Trade and Development Bank for their support throughout the entire process and assistance in concluding this transaction. We are proud of the new partnership and are ready to develop it.
Dmitry Pankin, President of the Black Sea Trade and Development Bank:
- We are pleased to assist Metinvest Group, a leading manufacturer and employer in Ukraine, in implementing a development program aimed at improving production technologies, increasing efficiency and reducing environmental impact. Given the importance of this sector for the country and its export potential, this agreement will be of great importance for the development of Ukraine. As a regional development bank, we welcome the Group's plans to purchase new equipment and export its products to other member countries of the Black Sea Trade and Development Bank, thereby strengthening regional cooperation.
METINVEST Group is a vertically integrated group of mining and metallurgical companies that manages every link in the supply chain from mining to ore and coal processing and the production and sale of semi-finished and finished steel products. The structure of the Group includes mining and metallurgical enterprises located in Ukraine, the European Union, Great Britain and the United States, as well as a sales network covering all key world markets. For the purposes of preparing financial statements, the Group's business is divided into 2 segments - Metallurgical and Mining. The Group's strategic vision is to become Europe's leading vertically integrated steel producer, delivering robust growth and profitability and investment returns above industry standards despite cyclical markets. For the 9 months ended September 30, 2020, the Group had revenues of US $ 7.6 billion and an EBITDA margin of 18%.
Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine. The BSTDB head office is located in Thessaloniki, Greece. The BSTDB supports economic development and regional cooperation through the provision of loans, credit lines, equity capital and guarantees for projects and trade finance in the public and private sectors of the participating countries. The bank's authorized capital is 3.45 billion euros. The credit rating agency Standard and Poor’s assigned the BSTDB a long-term rating at the A- level, and Moody’s at the A2 level.