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 loan agreement with ING Bank for up to $ 100 million (or equivalent in Euro) and for a period until November 30, 2020
In accordance with the terms of the agreement, the interest rate on the loan (Sustainability Improvement Loan) depends on the level of the corporate social responsibility (CSR) rating of the Company and may be reduced if the rating indicators improve.
Alexey Voronov, Chief Financial Officer of the Company, commented:
“Sustainable Development (ESG) is an integral part of the Company's strategy and the basis of its long-term competitiveness. In 2018, Metalloinvest received its debut CSR Silver rating from the international independent rating agency EcoVadis. Today, we are pleased to announce the opening of a green financing credit line, which is an example of the Company's further development in the field of sustainable development. In partnership with ING Bank, Metalloinvest became one of the first companies in Russia to enter into a green finance agreement. This credit line stimulates the improvement of the ESG indicators of the Company, and is also an additional source of liquidity. "
Mikhail Chaikin, General Director of ING Bank in Russia, commented:
“We are pleased to provide Metalloinvest with a credit line, which for the first time in Russia is tied to an EcoVadis rating. Sustainable development is a priority in Metalloinvest's development strategy. The company sets goals that also reflect ING's vision and aspirations. We are consistently working to disseminate our international experience in the field of green financing in the Russian market. We are pleased to be able to offer this innovative solution to Metalloinvest and continue our long-term and constructive cooperation. "
For reference:EcoVadis is an independent rating agency specializing in sustainability ratings used by companies in their business activities, including supply chains, banking and finance. The EcoVadis methodology is based on international sustainability and CSR standards, including the Global Reporting Initiative, the UN Global Compact and ISO 26000, applicable to 198 categories in 155 countries. EcoVadis assesses companies on 21 criteria in 4 thematic groups: environment, fair work practices, ethics and integrity in doing business, supply chain.
In November 2018, Metalloinvest received its debut CSR rating from EcoVadis. Based on the results of the assessment, the Company was awarded the “Silver” level of CSR practice recognition. Metalloinvest was ranked among 11% of the world's best metal and steel producers rated by EcoVadis (over 900 companies). The company was also ranked among the 7% of the world's best metal and steel producers in terms of environmental impact criteria.
In 2018, the Company's investments in minimizing the impact of production on the environment and spending on environmental measures amounted to 7.2 billion rubles.
