Metalloinvest (the "Company"), a leading manufacturer and supplier of iron ore products and hot briquetted iron in the global market, one of the regional producers of high-quality steel, announces the signing of a framework agreement with 12 partner banks of the Company to conclude ECA financing transactions *.
In accordance with its loan portfolio management strategy, Metalloinvest signed a framework agreement on cooperation in financing secured by foreign export credit agencies with 12 partner banks.
This framework agreement was concluded to optimize the attraction of financing within the framework of annual investment programs, including the acquisition of foreign equipment and determines the procedure for interaction between the parties, a covenant package, the format of individual agreements for financing specific projects, as well as a number of other aspects inherent in this kind of lending. The structure of the framework agreement provides for the possibility of new partner banks joining it. The documentary agent for the transaction is MUFG Bank.
Alexey Voronov, Chief Financial Officer of the Company, commented:
“As part of financing the Company's investment activities, we regularly raise loans for the purchase of foreign equipment under the guarantees of export agencies, which allows us to receive long-term financing at an attractive interest rate. A framework agreement with twelve international partner banks will significantly reduce the time required to prepare documentation, simplify the implementation of financial projects, and optimize costs and conditions for raising funds for specific transactions. "
Christopher Marks, Head of Emerging Markets EMEA at MUFG, commented:
“We were delighted to be the documenting agent for the ECA Framework Agreement for Metalloinvest. A significant number of international banks have joined the agreement. The new structure allows attracting ECA financing for various investment projects covered by a wide range of export credit agencies. This structure, in our opinion, is unique for the export lending market and will help the Company to develop this type of financing and conclude new transactions. "
For reference:* ECA-financing is loans raised against guarantees of export credit agencies in the event of a contract for the supply of equipment for an investment project. The guarantee allows you to raise funds for long periods at more competitive interest rates.
